Some notes out of a "Breakfast with Ballmer" (in Boston no less, for you lovers of all things alliterative) showed an interesting exchange between the Microsoft CEO and a former Lotus executive.

As recounted by correspondent Scott Kirsner on

The one sparky interchange -- no surprise -- seems to have been initiated by angel investor (and former Lotus exec) John Landry, who said it seemed to him that Microsoft is still very much focused on desktop computing, and considers all other devices to be peripherals to the PC. Landry waved his iPhone and said he does 80 percent of his work on that device. Ballmer responded by saying that Microsoft was aware that it has to do much better with Windows Mobile 7, its forthcoming mobile operating system (the release of which has been pushed back into 2010). "We know we have to kill on that one," a meeting attendee recalled Ballmer saying. (I've got a call in to Landry, to get his version of the discussion about the iPhone.)

Twitter entrepreneur Laura Fitton also noted that very few people are developing Twitter apps for Windows Mobile. Ballmer responded by saying Microsoft realizes that the company is engaged in a long campaign to get more developers writing apps for the Windows Mobile OS.

Hmmmmm. Tens of thousands of apps out there, but nobody's developing for Windows Mobile? "Very few" Twitter apps? We've got a couple hundred apps in the Windows Marketplace for Mobile already, and we're expecting tons more next month in Phase II. Anybody else smell trouble here?