Google invited the world's media to its Googleplex headquarters in California to talk about new developments.

'Limitless growth'

Talking to the BBC, Mr Schmidt also reflected on Google's decision to adhere to Chinese government censorship rules in order to launch its new site in China.

He said the decision was "the hardest the company has ever made" but added that, despite it being heavily criticised, he still felt it was the correct move.

Mr Schmidt also believed that competition in the internet search business, especially from Microsoft and Yahoo would drive up prices and increase revenue rather than threaten them.

Google appeared to be benefiting from its "limitless growth model", he said, adding that more users, more advertisers and more content would fuel further demand.

Google's profit in the first three months of 2006 rose 60% to $592m (£333m), from $372m a year ago. Revenue was up 79% to $2.25bn, ahead of analysts' forecasts.

The company is launching a string of new products and Mr Schmidt pledged that its key search engine business would remain at the heart of them.