Gates sees big dollars in little devices

C|Net | at | by Mike

Bill Gates doesn't think his company has been slow to crack the cell phone market. He just thinks the little devices have yet to catch up to the power of his company's software.

Still, with cell phones quickly gaining the power PCs had not that long ago, Microsoft's chairman sees a bright future, in which the company's operating system can quickly gain share from Nokia and others that run rival software.

Gates spoke to CNET News.com on the eve of a speech announcing Windows Mobile 5.0, the next version of Microsoft's operating system for handhelds and cell phones. In the chat, Gates outlined the company's mobile strategy, explained why Microsoft is steering clear of the portable-game market (for now) and described why he's happy that Microsoft is an underdog, for a change.