02/19/2013 12:59 pm ET Updated Feb 19, 2013

Bill Gates Talks Microsoft's Mobile Business: I'm 'Not Satisfied'

Bill Gates is feeling some regret about Microsoft's mobile strategy.

In an interview with CBS, Microsoft Chairman Bill Gates said that Microsoft "didn't miss cellphones," but he recognized that the company hasn't been able to secure the top spot in the mobile market. The inability to secure an early lead (in contrast to, say, Apple) was "clearly a mistake," Gates said.

Gates also offered his and CEO Steve Ballmer's thoughts on the company's recent innovations: "He and I are not satisfied, in terms of breakthrough things, that we're doing everything possible."

The Windows Phone 7 did not do well when it was released in 2010, though Microsoft was cagey with sales numbers. The Windows Phone 8, released in October 2012, was the third-most popular smartphone in the U.S. by the end of the year, behind Apple and Android.

Some blame Ballmer for Microsoft's decline, as Gates has taken more of a back seat in the past few years to focus on his philanthropic work. Gates is supportive of Ballmer, though.

"There were a lot of amazing things Steve's leadership got done with the company last year. Windows 8 is key to the future, the Surface computer, Bing people have seen is a better search product, Xbox ... is it enough? No." he said.



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