He says that uberlarge categories—"non-niche" ones, like PCs and phones that sell over 300 million units a year—won't be dominated by a single player. There'll be multiple guys in the game, and he still thinks "the software that's gonna be most popular in those phones is gonna be software that's sold by somebody who doesn't make their own phone."
Yes, this is the same Steve Ballmer who admits Microsoft boned Windows Mobile hard and is about to come out with some Microsoft-branded phones for youngsters. That's just a small of part of an interview that covers lots of ground and is definitely worth watching—it's a view of Ballmer you probably haven't seen before. [TechCrunch]