Futher evidence from a recent interview that the CEO of Microsoft, Steve Ballmer, is a prat:
"We’re gaining share. Apple is expensive," Ballmer said. "And in tough economic environment, people get it. Their model is, by definition, expensive. And we’ve actually held or maybe even gained just a tiny bit of share relative to the Mac in the last 12 months. And it’s not really Snow Leopard. It’s really Windows PCs versus Mac."
And rebuilding your Win XP box isn't expensive? Years ago, Microsoft's internal policy stated that Windows needed to be reinstalled several times per year--translation--the OS is so bad it can corrupt itself and require reinstallation several times throughout a 3 year hardware lifecycle.
If you still have doubts, consider this:
USA Today has an interview up with Steve Ballmer that touches on a number of interesting topics, including the CEO's perception of the iPhone and its chances of long-term success.
"There's no chance that the iPhone is going to get any significant market share. No chance," said Ballmer. "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."
Ballmer is like a giant parrot--flits about, speaks poorly, and says nothing.