During an interview with Eventbrite CEO Julia Hartz, Microsoft co-founder Bill Gates revealed his greatest mistake while running the software giant, indicating:
“The greatest mistake of all time is the mismanagement I engaged in that caused Microsoft not to be what Android is.”
As a result, Google ended up developing Android before Microsoft, arguably the most popular operating system, majorly due to its versatility and high level of customization. While the billionaire claims developing a similar operating system would be "a natural thing for Microsoft to win," he admits mismanagement on his part and an array of antitrust-related issues prevented the company from seizing the opportunity,
Following Microsoft's missed opportunity, Google moved to acquire Android in 2005, prompting the launch of its first device in September 2008. On the other hand, Apple had a significant lead over Google in the mobile landscape for over one year and had already launched its first iPhone in 2007.
You know, in the software world, in particular for platforms, these are winner-take-all markets. So, you know, the greatest mistake ever is the whatever mismanagement I engaged in that caused Microsoft not to be what Android is, [meaning] Android is the standard non-Apple phone form platform. It really is a winner-take-all. If you’re there with half as many apps or 90% as many apps, you’re on your way to complete doom. There’s room for exactly one non-Apple operating system, and what’s that worth? $400 billion that would be transferred from company G [Google] to company M [Microsoft].
Microsoft co-founder, Bill Gates
Interestingly, Android co-founder Rich Miner shares a different account on Bill Gates and Microsoft's missed opportunity with Android. According to Miner:
"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."
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 🤣Retweet if you think I should share our original pitch deck1/2 pic.twitter.com/urjZWK0yHEJanuary 14, 2025
Miner further disclosed that he was part of the team that helped Orange launch the first Windows Mobile phone in 2002. Speaking of Windows Phone, Microsoft CEO Satya Nadella admits pulling the plug on It was a "strategic mistake."
The Android co-founder further indicated that he was worried Microsoft would end up controlling mobile like PCs. "So, sorry, Bill, you're more responsible for losing the $400B than you realize," Miner concluded.
Microsoft co-founder Bill Gates added that if he had seized the opportunity when it presented itself, Microsoft would be the company.
However, Microsoft is fairing quite well and is among the world's top three most valuable companies, battling for the top spot against Apple and NVIDIA. Last year, Microsoft briefly held the crown ahead of Apple and NVIDIA with over $3 trillion in market valuation, predominantly due to its early investment and adoption of generative AI across its tech stack. Bill Gates says the tech giant continues to enjoy considerable success through its wide array of products, including Windows and Office.
