"How many products, of all the Google products that have been introduced, how many of them are profit-making products?" the Times quoted Gates as saying.
"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?" the paper quoted him as saying.
Google has been reported to be preparing to enter the cell phone market with its own software, the paper said. Microsoft has about 10 percent of that market, it said.
"The phone is becoming way more software intensive," Gates told the Times. "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."