Microsoft CEO Steve Ballmer was recently interviewed and among the topics discussed was the business in comparison with smaller rival Apple. Ballmer held nothing back when he talked about Apple's prospects.

"There's no chance that the iPhone is going to get any significant market share. No chance," says Ballmer as he talked about the much-anticipated mobile phone entry of Apple.

"It's a $500 subsidized item. They may make a lot of money. But if you actually take a look at the 1.3 billion phones that get sold, I'd prefer to have our software in 60% or 70% or 80% of them, than I would to have 2% or 3%, which is what Apple might get," adds Ballmer.

Mac Daily News pointed out that the outspoken CEO seemed to veer away from the subject of the iPod and the devotion that fans have shown it. "Would I trade 96% of the market for 4% of the market? (Laughter.) I want to have products that appeal to everybody," comments Ballmer.

The Apple iPhone is due out in the second half of this year.