Bill Gates takes a shot at functionality of Apple's iPad

Bill Gates, Microsoft co-founder and executive chairman has criticised Apple, claiming that users are "frustrated" with the limited versatility of the iPad, and that they should consider Windows alternatives.

Gates argues the iPad is inherently limited in terms of its features, claiming that users can't type, create documents and don't have access to Office.

"Windows 8 really is revolutionary in that it takes the benefits of the tablet and benefits of the PC and is able to support both of [them]. [With] Surface [and] Surface Pro you [have the] portability of the tablet, but [also] richness in terms of the keyboard and Microsoft office of the PC," he said during an interview with CNBC.

Microsoft's efforts to enter into the tablet market have been stunted thus far by the popularity of Google's Android and Apple iOS operating system. The Surface devices have claimed just 1.8 per cent of the tablet market, according to the latest figures from IDC .

In an attempt to kickstart the adoption of Windows tablets, Microsoft is planning to introduce a smaller version of its Surface Pro device. Taiwanese PC manufacturer Asus has also confirmed to the Wall Street Journal that it will starting to make Windows 8 tablets smaller, cheaper Windows tablet.

Jerry Shen, Asus CEO claims that the price of Windows 8 devices could drop to $300 by the end of 2013.

"We're very optimistic about sales for Windows 8 tablets this year," he said

"With Microsoft's new push toward smaller devices, Windows 8 tablets this year could cost just $50 more than Android ones."

However, regardless of Microsoft's success in the tablet market, PC sales are still expected to fall dramatically. The IDC reported a loss of 14 per cent in PC shipments during the first quarter, the largest decline since 1994.