Gates' comments came in a speech in Washington, where he touted a much more expensive mobile laptop, recently unveiled by his own company Microsoft, reports said Thursday.

Gates predicted a bright future for mobile computers and phones but scoffed at the $100 machine being developed by Massachusetts Institute of Technology (MIT) media guru Nick Negroponte, for use by children in the developing world.

The devices, backed by Microsoft rival Google, were unveiled at a UN conference last year. They include a hand crank to power the units off the electricity grid and a mesh-networking device to allow people to share information and Internet connections.

Gates also blasted the crank system that can provide some of the laptop's power. "Geez, get a decent computer where you can actually read the text and you are not sitting there cranking the thing while you are trying to type," he added.

Gates, who was named the world's richest man this month with a $50 billion fortune, also told the Government Leaders Forum that phones would soon become "digital wallets" that store and coordinate personal information for everyday use.

His comments sparked protests on technology news sites, with Cnet.com saying the remarks showed that Gates lacked basic understanding of public relations.

"Gates needs a reality check," said a reader on VNU.net. "Mr. Gates should go to the towns where these laptops are headed to see what conditions are really like. Hand cranked power is essential in places with limited or no electricity."

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