Microsoft is currently locked in a David and Goliath battle with rival Google, Microsoft chief executive Steve Ballmer has stated.

Mr Ballmer told the BBC that the company should have begun operating in the search advertising and pay per click sector much sooner than it did.

However, he said that Microsoft is working on the issue and expressed confidence in his company’s ability to catch up to Google.

Mr Ballmer also emphasised the performance of Microsoft’s Windows Mobile system compared with Google’s recently launched Android software.

"You’ve got to remember Android is version one … and it looks like version one," he commented.

"They’ve got one handset maker, we’ve got 55. They’re available through one operator, we’ve got 175."

Mr Ballmer recently told the Churchill Club in a speech that Microsoft has a five-year fight on its hands to catch market leader Google, CNET reported.

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