Microsoft CEO and current CES Keynoter Steve Ballmer, prior to the original iPhone 2G's launch, had quite a bit to say:

“You can get a Motorola Q for $99. [...] [Apple] will have the most expensive phone, by far, in the marketplace.” [...] “There’s no chance that the iPhone is going to get any significant market share. No chance.”

Flash forward 2 years, where Apple's $199 iPhone was the best selling smartphone -- and all around phone -- in the late-summer quarter, and the cost of unlocked Windows Mobile handsets like the Xperia X1a rocketed past the $800 price point, and what does everyone's favorite internet dance sensation have to say? According to the Financial Times (Registration annoyingly required, text via Ars Technica):

Ballmer conceded that Apple's iPhone (and RIM's BlackBerry) have "clear market momentum." Indeed, Windows Mobile has suffered in the face of strong competition from RIM and Apple.