Microsoft CEO Steve Ballmer acknowledges Nokia as only competitor in the smart phone market

Let’s talk about Windows Mobile. You have said that you could foresee mobile licenses, or shipments, outpacing desktop licenses at some point. Could you talk a little bit more about that?

Ballmer: Let’s say the PC market is roughly 200 million units these days, and let’s say the PC market goes great guns over the next several years and grows 14 percent or 15 percent a year. Those are big numbers. You go great guns, China booms. You get maybe over 400 million in a few years. The cell phone market is already a billion units a year, and the truth of the matter is that what I’ll call "smart devices," as a percentage, the total is rising dramatically.

When it comes to smart devices, there really aren’t that many players. Basically, you have Nokia/Symbian, you’ve got us. Actually, I’ll be so bold as to say that the two of us stand out in that area. Then you have some guys who are more niche players–Palm is more of a niche player, (Research In Motion’s) BlackBerry is more of a niche player, those Linux devices from Motorola, particularly in China, (mean it) is more of a niche player.

You have some things intermediate between dumb and smart devices–kind of the J2ME-type phones–but when you talk about real smart devices, there’s really two guys who I think are broad frontline players and have most of the share. It often surprises people when we tell them how much we outsell BlackBerry. BlackBerry, because they are more popular in the United States, people assume that they’re quite popular. The truth of the matter is we actually outsell BlackBerry many factors to one, that’s worldwide, yeah, absolutely.

What happens when Apple produces a smart phone, which they probably will at some point? How does that change the equation?

Ballmer: Well, their business model will look a lot more like the business model of the Trio and BlackBerry, than it does (that of) us and Nokia. Nokia is sort of having their cake and eating it, too, a little bit, with Symbian. Hey, in no business that we’re in, can we expect that other people aren’t going to enter and bring some creative ideas. We will see what Apple does.

Source: C|Net (The only parts of this interview that mention Nokia are on the last page)

Where to begin …

Microsoft is going to merge their Windows Mobile Smartphone and Windows Mobile operating systems in 2007, one OS to rule them all. Nokia on the other hand has Series 40, 60 version 2, Series 60 version 3, and Series 80. None of which are compatible with each other.

Microsoft has built in software into its operating system to interface with its own devices. Nokia has the awkward and embarrassing Nokia PC Suite.

Microsoft has Microsoft Office Mobile which is bit for bit the best hand held office suite since its written in-house of course. Nokia’s solution is … not the best.

Microsoft has a lot, a whole lot, more money to pour into its operating system than Nokia.

Windows Mobile does get better and better with each release, no one is denying that. What’s great is some manufactures even offer upgrade CD’s that flash your mobile to the latest OS. Nokia … they tailor more to the phone first, pda second crowd.

Developing for Windows Mobile is a lot easier than developing for Nokia, have you seen their IDE compared to Carbide?!

So what can Nokia do? I’d have to see what they’re working on behind closed doors before I say we as Symbian fans should enter into panic mode.