About one week after the iPhone was announced at MacWorld in 2007, CNBC had a sit down with none other than Microsoft CEO Steve Ballmer. The elephant in the room? You guessed it, the iPhone. When asked what he thought of Apple’s announcement, Ballmer laughed at the idea of $500+ phone despite admitting that it may sell well. Here we are, two hardware generations later and Apple’s taken over 17% of the worldwide smartphone market. The lesson here? Never underestimate the competition. Hopefully, WinMo 7 has a few tricks up its sleeve.