Microsoft Corp. (NASDAQ:MSFT) co-founder Bill Gates admitted to a significant oversight that, according to an Android co-founder, cost the Windows-maker a $400 billion opportunity in the mobile sector.
What Happened: During an interview with Eventbrite CEO Julia Hartz, Gates acknowledged his mismanagement led to Microsoft missing out on developing a mobile operating system akin to Android.
Gates expressed that creating such an operating system should have been a natural win for Microsoft.
However, he cited mismanagement and antitrust issues as barriers that prevented the company from capitalizing on the opportunity.
Consequently, Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google acquired Android in 2005, launching its first device in 2008, while Apple Inc. (NASDAQ:AAPL) had already released the iPhone in 2007.
Meanwhile, Android co-founder Rich Miner shared his perspective, stating he helped create Android to prevent Microsoft from dominating the mobile space as it did with personal computers.
Miner humorously remarked on Gates’ regrets, attributing Microsoft’s loss more to Gates’ actions than he might realize.
"I helped Orange launch the first Windows Mobile phone in 2002, the SPV. I worried MSFT might end up controlling mobile like they did the PC, I wanted something more open. So, sorry Bill, you’re more responsible for losing the $400B than you realize," Miner said.
I literally helped create Android to prevent Microsoft from controlling the phone the way they did the PC – stifling innovation. So it's always funny for me to hear Gates whine about losing mobile to Android 🤣
Despite this missed opportunity, Microsoft remains a leading global company, competing with Apple and Nvidia for the top spot in market valuation, thanks to its strategic investments in AI and other technologies.
Why It Matters: Gates has often reflected on his career and the decisions that shaped Microsoft’s trajectory. His recent acknowledgment of the mobile market misstep adds to a series of introspections.
Gates has previously expressed regret over leaving Harvard to start Microsoft, a decision that, despite its success, left him with mixed feelings.
More recently, Gates has been vocal about the challenges facing future generations, including the potential pitfalls of artificial intelligence, a sector where Microsoft is now heavily invested.
This context highlights Gates’ ongoing influence and the lessons he continues to draw from his past, shaping both his personal outlook and Microsoft’s strategic direction.