Microsoft Chief Executive Officer Steve Ballmer had an interesting reaction when interviewed in relation with Apple's iPhone. Ballmer was not shy about bursting into laughs in the face of $500 full-subsidized with a plan phone. Microsoft's CEO then went to explain his perspective on the Apple iPhone, according to which the product has very little appeal.

"I said that is the most expensive phone in the world and it doesn't appeal to business customers because it doesn't have a keyboard which makes it not a very good email machine. Now, it may sell very well or not, I, you know. We have our strategy, we've got great Windows Mobile devices in the market today, we, you can get a Motorola Q phone now for $99, it's a very capable machine, it'll do music, it'll do, uh, Internet, it'll do email, it'll do instant messaging," revealed Ballmer.

In this context, Ballmer declared that he is confident in Microsoft's strategy and believes that the only thing going for Apple's iPhone is the hype factor synonymous with the brand. Labeling the iPhone the most expensive phone in the world, Ballmer showed confidence in the fact the he believes that Apple won't make an impact on the market.

"I don't think this would be a very interesting announcement if anybody else had announced exactly the same product," Ballmer commented. "If you didn't put the Apple name in that equation, I'm not sure how people would assess it."

But while Ballmer downplayed the iPhone, the truth of the matter is that it is not the most expensive phone on the market, and although there are devices that offer similar functionality for much less, the iPhone is a very appealing offer for the high-end phone market.