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Monday, September 25, 2006

Gates tips handset-MP3 to kill iPods
Apple Computer's iPod is just a flash in the pan and may soon be buried by mobile phones with MP3 capability, Microsoft's Bill Gates said.
Apple and Motorola agreed last year, in theory, to produce an iPod-type mobile phone that can play music downloaded from Apple's iTunes Music Store. Gates, who spoke up on the subject in an interview last week in Germany's Frankfurter Allgemeine newspaper, endorsed the idea and said he saw parallels in the way Microsoft eclipsed the once-dominant Apple in the PC computer race.

You can make parallels with computers: Apple was very strong in this field before, with its Macintosh and its graphics user interface -- like the iPod today -- and then lost its position," Gates told the German newspaper. "As good as Apple may be, I don't believe the success of the iPod is sustainable in the long run."
"If you were to ask me which mobile device will take top place for listening to music, I'd bet on the mobile phone for sure," he added.
The Microsoft co-founder has been touting his firm's Windows Mobile smartphone software in the face of its lacklustre acceptance in the marketplace so far. However, Microsoft is betting that its recent mobile releases will lead to wider acceptance of its mobile and music offerings.

Gates also took advantage of the interview to promote Microsoft's Windows Mobile 5.0 release -- at the expense of mobile email pacesetter Research in Motion's BlackBerry combo phone and email device. "The BlackBerry is great but we're bringing a new approach," Gates said. "With BlackBerry you need to link to a separate server, and that costs extra. With us, the email function will already be part of the server software."
As for Apple and Motorola's iPod-based mobile phone, in March, Motorola announced some music-capable handsets, but an iPod-based model was conspicuous by its absence. At the time, Motorola executives noted that Apple typically doesn't announce products until they are ready for customer shipment. Also, there were media reports stating that mobile phone service providers haven't cottoned to the idea of a combo phone-music player that they can't control.