TMO Reports - Gates Doubts iPod a Microsoft Employee Favorite; "iPod's a Great Success"

by , 7:10 PM EST, February 16th, 2005

Microsoft Corp. founder and chairman Bill Gates said Wednesday he doubted claims that 80% of his employees are iPod owners. Acknowledging the iPod has been a "great success," he said consumers want more choice than what Apple can offer and Microsoft will gain market share in digital media devices in 2005.

In an interview with ABC News anchor Peter Jennings, Mr. Gates said, "I doubt that's the case" when asked if a recent story in Wired news is correct when it quoted an anonymous Microsoft employee as saying about 80% of the employees at Microsoft's Redmond, Wash. campus own and use an iPod at work.

"Certainly, the iPod's a great success," Mr. Gates said, praising Apple CEO Steve Jobs for having done "a lot of amazing things in our business."

When asked if he owns an iPod, Mr. Gates said, "No, I'm not an iPod user. I use the Creative Zen, which is a fantastic product."

On the subject of the iPod's success, Mr. Gates acknowledged Apple has done a "great job" in marketing and selling the iPod, but refused to acknowledged that Apple had beaten out Microsoft for dominance in music players. Mr. Gates vowed that customer choice will win out in the end.

"It's their (player), only their one music store, only their device," he said of Apple. "What we're doing is providing choices. So it's like the Apple computer versus the PC. With the PC you can buy from many companies so you get cheaper prices, you get more variety and here with music devices we're coming in with the same. But they're a strong leader in the space and I think as we gain share, people will be surprised."

Other issues Mr. Gates commented on included: