Bill Gates Says His ‘Greatest Mistake ever’ Was Microsoft Losing to Android

Tom Warren at The Verge wrote an article about Bill Gates interview and I want to start with one particular part.

Many had assumed that Microsoft’s missed mobile opportunity was a Steve Ballmer era mistake. [Ballmer famously laughed at the iPhone]() , calling it the “most expensive phone in the world and it doesn’t appeal to business customers because it doesn’t have a keyboard.”

This is a pet peeve of mine. Ballmer did laugh at the price of the iPhone, but what nobody mentions again and again – Apple cut the price shortly after the release of the phone. The price was too high at that time. This doesn’t excuse Microsoft form blowing the mobile, but I think journalists should be factual.

Regarding Gates statement, Google did win the smartphone war, but after that Microsoft became so much more. For the user all of this is good. The more companies there are the better. If Microsoft dominated mobile market together with the desktop, I don’t think anything good would come out of it.

I’m mostly all-in in the Apple ecosystem, but I still use Microsoft Office and gladly pay for it (as Microsoft made it pretty easy). I try not to use Google products, from the privacy perspective. I have Google account at work, but try not to use anything for personal stuff.

Another interesting point is that in technology somehow, we’ve come to the place, where competition is not as strong. We have one dominant player, second – distant one and nothing after that. Take desktop OS as an example, there is Windows which is dominant, than there is a macOS and … it will never be the year of Linux on the desktop. Only now, when the market went to tablets, do you see ChromeOS emerging mostly in schools and universities.

Search is another example. In most of the countries there is Google and nothing else. In post-soviet countries Yandex mostly dominates with Google being second. But even Microsoft with all of its money and position with desktop OS can’t make Bing a worthy contender. And taking it back to the Bill Gates quote – mobile OS. There is Android which dominates market share. There is iPhone which dominates hardware revenue and nothing else. A couple of players tried to enter the market, but without the 3rd party developer support there won’t be users and without users, developers won’t have reason to build their apps for another OS.

Although two players make competition, but duopoly is not the best situation. For most of the people there is no choice. In the mobile OS market, if you want to choose another player you loose a lot. If you want to leave iOS for Android, you will become green bubble, you will lose access to your movies and TV shows, maybe music you bought. You won’t have first party end-to-end encrypted messages. You won’t be able to use Apple Watch. AirPods won’t work as good as with an iPhone.

Consider car manufacturers. First of all there are a couple. You have an actual choice. Japanese, German, French, Italian, Korean, American, etc. If you drove BMW and want your next car to be Audi, what will you lose? At most the membership in the Facebook group. Nothing else. You will just change your car.

Vendor lock-in is an interesting dilemma. I benefit from it a lot in the day-to-day life. Having everything from Apple makes it play together nicely. As an example, I unlock my Apple Watch with my iPhone and later my MacBook with an Apple Watch. It all syncs, I use Apple Music as it works better with a Watch and Siri, although Spotify might even be a better product. But on the other hand, if Apple starts (or one might say already started) making shitty notebooks, it will be hard to buy Windows PC or Chromebook, as they won’t play so nicely with my other devices.

And here we come to a point. Although I am a strong believer in the market making everything right, maybe in some cases some intervention is good? It helped to stop Microsoft dominance, because it felt government looking over the shoulder at every move the company made, so decisions were informed by that. Should the US government break-up Apple? I don’t think so, but we should be asking those questions and not blindly following everything the company does.