Archive for August 19th, 2009

Apple vs Google?

“Pretend inferiority and encourage his arrogance.” — Sun Tzu, The Art of War

Once upon a time in a land called teh interwebs, there existed two titans of industry called Apple and Google. These behemoths of their craft often collaborated to not infringe upon each others colossal steps, for they shared a common enemy, the great beast Microsoft.

Google and Apple agreed not to steal employees from each other, Apple gave Google Maps a default app on the iPhone, Safari uses Google as its standard search engine, and even Google’s CEO served on Apple’s board of directors.

But the cushy relationship between the two tech giants may be hitting some turbulence. Their progressive tactics and thoughts toward innovating were bound to grind up each other eventually like two massive platelets below earth’s surface.

First Google announced their Android mobile software (direct threat to the iPhone), then GOOG announced a new web browser (direct threat to Safari), then a shocking announcement of a new Chrome operating system (direct threat to OS X), then came a rejection of Google Voice from the iPhone app store, and finally the resignation of Google CEO Eric Schmidt from Apple’s board.

Schmidt’s resignation seems in many ways a call to arms in the valley. The announcement led Apple CEO Steve Jobs to release his first statement in months, due to a liver transplant, saying, “Unfortunately, as Google enters more of Apple’s core businesses, with Android and now Chrome OS, Eric’s effectiveness as an Apple Board member will be significantly diminished.” Oooo, that’s gotta burrrrnnn.

In many ways (revenue growth, press love, stock success), Apple and Google are two of the most influential companies, across any industry, of the past decade. A gloves off rivalry could potentially change tech as we know it.

Schmidt’s resignation was overdue and more surprising than shocking. What should be read from Mr. Jobs saying, “see ya wouldn’t want to be ya” is where the two companies will be crossing paths in the near future. It is easy to point to SEC and FCC investigations into the two companies but let’s look at operations conflict, not external matters.

Obviously Android has tremendous appeal. It is an open operating system with third party application development without Apple’s tightly monitored app approval process. Plus, Android’s ability to operate many mobile devices will be a direct threat to Apple’s mobile market share. App developers could simply grow weary of Apple’s obsessive regulations and start coding for a different platform. That is entirely possible with some of the iPhone’s app stores many developer problems.

Step up 2 the streets bitch

Step up 2 the streets bitch

Another obvious dilemma is Chrome OS. Apple has essentially made its comeback to relevancy based on the iPod and OS X. The latter the direct results from Steve Jobs’ past company, NeXt. Mac users are willing to pay more for their operating system. Surveys and market research have proved this again and again. If Google were to release an OS, that was indeed a solid alternative to Windows for non-Mac owners, Apple would have a serious threat on their hands, especially in a value conscious economy.

Open world vs tight environment is worth discussing. Google wants everything to be open, practically free, available to all, and have demand marketed by the masses. Apple is overly regulated. Secrecy rivals the CIA. They don’t even let you remove your batteries from their devices anymore. They have this confidence that they can tell you what you want regardless of what you say. And it is working well for them coming off their best non-holiday quarter ever. They have somehow been able to foster an environment of demand for their products that almost defies logic.

Cloud computing is also worth nothing for both, as it is undeniably the future of the internet, and only the biggest companies will be able to offer it well. Apple is building a huge data center, maybe to offer MobileMe free or cheaper, and it is no secret of Google’s love for cloud.

And maybe this is all hogwash and meme nonsense. Schmidt’s departure makes sense for both companies and may not signal all out war after all. But I can say this with full confidence and take it for what you will; Mobile internet is the immediate future of revenue streams and market share desire in technology. And Apple and Google have always sidestepped each other to hit Microsoft when they could, but now they are both large enough to pass MicroHoo and hit each other.

Game on holmes?

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