Steve Ballmer in 2007 shortly before the iPhone’s release:
Would I trade 96% of the market for 4% of the market? (Laughter.) I want to have products that appeal to everybody.
Now we’ll get a chance to go through this again in phones and music players. There’s no chance that the iPhone is going to get any significant market share. No chance.
A lot changes in 7 years: current estimates put Windows Phone at <4% of the market and Steve Ballmer is no longer the CEO of Microsoft. I guess that's what happens when you laugh at your competition while they change the world.