c|net sat in on a press conference with Chris Sorensen, who is in charge of MS's Asian smartphone strategy. His knocks on the iPhone are the ones you'd expect - no physical keyboard means it might not work for messaging (jury's still out on that), no Office means no business users, no 3G means pretty much the same.

Then again, everybody's pointing out that MS scoffed at the original iPod.

Basically I think that MS's intuition is right, the iPhone won't grab hold of business users, but it's going to be a huge shift in the consumer market. Whether or not Microsoft can maintain the progress they've made in that space remains to be seen. Let's see: by the end of the summer we'll have the iPhone, a bevy of WM6 devices, and the announcement of Palm's super-secret 3rd-type of device. Damn if it isn't a great time to be writing about smartphones.

"However, it's a closed device that you cannot install applications on, and there's no support for Office documents. If you're an enterprise and want to roll out a line of business applications, it's just not an option. Even using it as a heavy messaging device will be a challenge," the executive added.

Read: Microsoft: iPhone lacks business savvy | CNET News.com