Apple has no plans for movies on the iPod, Apple CEO Steve Jobs reportedly told the audience at the exclusive D: All Things Digital conference last week.

Jobs is claimed to have said: "I'm not convinced people want to watch movies on a tiny little screen." Apple has sold over 700,000 iPods and expects to reach one million sales during summer.

Asked if Apple would make a tablet PC, Jobs is said to have remarked that "there are no plans to make a tablet because it turns out people want keyboards".

Tablet 'rich man's toy' "Tablets appeal to rich guys with plenty of other devices already", he is reported as saying, "and people accuse us of niche markets."

Speaking at the same event, Microsoft chief technology officer Bill Gates is said to have disagreed, claiming that Tablet PCs will "become pervasive".

Discussing pressure on Apple to produce a PDA, Jobs said that Apple believes this function will be carried out by mobile phones.

Jobs also talked-up iSync and QuickTime, saying that "it's some of the best software in the world to sync information between devices" and that "we believe that is where cell phones need to go".

Jobs also discussed the future of Apple's iTunes Music Store, looking at a time when other suppliers such as Microsoft or Real Networks move into the space.

Smart move "Maybe these guys are a lot smarter than us, they probably are," he is claimed to have said, repeating earlier claims that organizing technology, infrastructure, and distribution rights for other services "may be a little harder than it seems".

He added that over half the tracks acquired through the store were bought as parts of albums, and said he believes album sales will remain "significant", as end users access more than they are able to in shops. "I expect back-catalogues are going to be worth a lot," Jobs said.

The D: All Things Digital conference was organized by the Wall Street Journal. Many who attended signed non-disclosure agreements.

Web blog Bag and Baggage's author says her reporting of Jobs' comments are "paraphrased and incomplete".