In a recent interview with the NYTimes, (free registration or BugMeNot required) Bill Gates showed skepticism of Google having any success with the GPhone. Here’s the relevant passage:

During the interview Mr. Gates rejected the notion that Google could become a successful competitor in the smartphone software market, where Microsoft has about 10 percent market share. The Silicon valley search engine provider has been widely reported to be preparing to enter the cellphone market with its own software and a host of services springing from that software.

Microsoft’s chairman said it was unlikely that Google would be able to make inroads into the Microsoft’s share of market for mobile phone software.

“How many products, of all the Google products that have been introduced, how many of them are profit-making products?” he asked. “They’ve introduced about 30 different products; they have one profit-making product. So, you’re now making a prediction without ever seeing the software that they’re going to have the world’s best phone and it’s going to be free?”

Again, the ability to create compelling software will determine the winners. “The phone is becoming way more software intensive,” he said. “And to be able to say that there’s some challenge for us in the phone market when its becoming software intensive, I don’t see that.”

Nobody expects Gates to be happy or cordial to a new behemoth competitor like Google in the mobile OS/software market. Mobile software expert Russell Beattie wrote a great response to Gates’s statement and gave an interesting analysis of the mobile software market and where it could go, which I recommend reading.

What are your thoughts? Let the world know in our comments…