Gates dismisses Google phone software challenge

Microsoft founder Bill Gates today rejected the possibility that Google could become a successful competitor in the smartphone software market.

The internet search engine provider has been widely reported to be planning to enter the mobile phone market with its own software and services as the Federal Communications Commission prepares to set the rules governing the auction of $15bn (€11bn) of public airwaves.

Mr Gates, 51, told the New York Times it was unlikely that Google would be able to make inroads into Microsoft’s 10% market share for mobile phone software.

“How many products, of all the Google products that have been introduced, how many of them are profit-making products?” he asked.

“They’ve introduced about 30 different products; they have one profit-making product. So, you’re now making a prediction without ever seeing the software that they’re going to have the world’s best phone and it’s going to be free?”

He went on: “The phone is becoming way more software intensive. And to be able to say that there's some challenge for us in the phone market when its becoming software intensive, I don’t see that.”

Mr Gates, who co-founded Microsoft 32 years ago, said he still plans to step away from the company next year as planned, despite remaining engaged in the firm’s technology strategy.

“I am in a lucky situation of having way more things that seem interesting to do and very exciting and important, and working with smart people, and highly impactful, way more than a 24-hour day will fit,” he said.