I know that I shouldn’t allow this to annoy the heck out of me, but according to several sources (The Register, All Things Digital, & PaidContent.org) Steve Ballmer has done it again…

According to Mr. Ballmer, since the iPhone uses a “expensive” capacitive touch screen, it’s too expensive. Capacitive touch screens are still relatively new technology, but allow very precise sensing, and support multiple contacts. Older technologies like Resistive touch screens are not precise, and don’t allow multitouch.

Windows Mobile, for all the plans I have read about Win Mobile 7, sounds like they are trying to play catch up, with the most inexpensive components… With a redesigned launch screen, and some extra glitter to try to make people believe that their products have improved. But I have used BlackBerry’s, Windows Mobile 5&6, Basic “stupid phones”, and the iPhone 1st Gen.

While the iPhone does not yet offer all the features that some of the high end smartphones do, it generally is easier to use and a more welcome device. There is none of the hunting to find a particular setting, and the layout is much more logical.

Now, it’s expected that Mr. Ballmer would down play the iPhone, after all, he needs to sell Microsoft products…

Touching on the upcoming Microsoft retail stores, Ballmer said the retail outlets will serve as a “showcase” for Microsoft products rather than a direct source of sales like Apple stores.

Doesn’t anyone else understand why the Gateway stores failed? This is just plain stupid. The Microsoft retail stores are going to be a “showcase” for their products? So how will you transform those now “happy shoppers” eager to buy your showcased products into purchasers? ‘Walk over here and we’ll place a web order for your gizmo’? If you don’t have stock on hand a good percentage of sales will evaporate right there. They’ll either go to a retailer that has the product on hand, or have an opportunity to be sold on a different product.

Assuming you can make the sale, you now have to fight Buyers Remorse, or the significant other syndrome…. (“You purchased what!?!?!? Cancel the order! NOW! WE CAN’T AFFORD IT!!!”)

Microsoft has a lot to learn if they are going to enter the retail business…