Bill Gates, the Microsoft co-founder, has recently shared insights about a major mistake in his career that resulted in a massive loss of $400 billion for the company. During an event organized by venture capital firm Village Global, Gates openly talked about Microsoft’s inability to establish itself in the mobile operating system arena, which paved the way for Google’s Android to become the leading alternative to Apple’s platform.
A Critical Error
“In the realm of software, especially regarding platforms, these markets are winner-take-all,” Gates remarked while speaking with Eventbrite CEO Julia Hartz. “The most significant error was the management missteps I made that led Microsoft to miss out on what Android has become. Android is now the standard for non-Apple mobile platforms. Microsoft should have naturally triumphed in this area.” Gates did some quick calculations and noted that if Microsoft had managed to secure the second position in the mobile OS market, it could have obtained a significant $400 billion share—funds that have instead strengthened Google.
The Timing Issue
The iPhone from Apple was launched in June 2007, and Android devices followed in September 2008. Microsoft’s Windows Phone 7 only entered the market later, in October 2010, by which time Android and iOS had almost entirely captured the mobile OS market, holding 99.9% of the share. Gates recognized that arriving late to this sector sealed Microsoft’s fate in the mobile world. “If you show up with significantly fewer apps, you’re headed for total failure,” he stated.
Microsoft’s blunder in mobile starkly contrasts with its stronghold in the PC industry. The Windows OS revolutionized personal computing during the ’90s and still plays a crucial role in its $3 trillion market valuation. However, as Gates pointed out, if Microsoft had been successful in mobile, “we would be the leading company.”
A Response from Android’s Co-Founder
Rich Miner, co-founder of Android, did not ignore Gates’ comments. He took to X (formerly Twitter) to respond: “I literally helped create Android to stop Microsoft from dominating the phone market like they did with PCs—suppressing innovation. So, it’s amusing for me to hear Gates complain about losing mobile to Android.”
Thus, it seems Microsoft inadvertently played a role in the creation of Android. At its peak, Microsoft’s strong presence in the PC market was often criticized for hindering competition and innovation. On the other hand, Android’s open-source framework was intentionally created to offer an alternative to proprietary systems like those of Microsoft and Apple.
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