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Ballmer better be scared of Android, because it is miles ahead of WinMo at the moment. Even the developer scene is doing quite nicely, with at least 10 new apps a day appearing. I have a G1, and a Touch Pro, but I'm using Android 100% of the time now. The era of WinMo is going to come to an end if Microsoft does not get their act together very soon.
If his reaction to Android is nothing more than blah de blah, then I'm guessing he hasn't actually SEEN Android, or used one of his own phones recently.
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