Record iPhone Sales Over-Hyped, Says Microsoft Executive

6:00 am on October 24, 2008 | Category: Cell Phones, Mobile Devices, Software

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Consumers and investors shouldn’t be too impressed by the Apple iPhone’s record-breaking sales last quarter, according to a leading Microsoft executive, who suggested that the device has yet to demonstrate long-term momentum.

“Apple had a big launch of a new product (the iPhone 3G), and they launched at scale in a lot of new countries with a lot of new operators,” commented Robbie Bach, head of Microsoft’s Entertainment & Devices Division, which produces the popular Windows Mobile operating system. “This quarter, (Research In Motion) is having its big launch, and at some point we’ll have our big launch. We’ll have to see where things normalize.”

Bach also suggested that the iPhone will face a natural market limit as the hype wears off, and AT&T (exclusive U.S. carrier of the device) begins to promote other products more heavily.

“Does AT&T like having iPhone on its network? Sure. But they want to have balance in that ecosystem, where there’s three or four big partners,” Bach explained. “That’s why we’re so attractive to them — because we work with Samsung, Sony Ericsson, LG, HTC, Motorola. Don’t get me wrong, the iPhone is a cool device. But it’s not about choice.”

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    Published by TeleClick Enterprises
    Edited by Jeremy Maddock