Gates: Internet devices will surpass PC

"There's no doubt some time in the next three to 10 years we'll cross over that threshold," Gates said.

Gates says that Internet-enabled digital cameras, palmtop devices, and Internet-ready TV sets would eventually replace PC use for home users, which represent the largest single market for computing devices. As such, Internet scalability will need to be enhanced quickly. He used HotMail as an example of this trend, a Microsoft-owned free email service that adds over 100,000 new users a day, according to Gates.

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