Resign from Apple’s Board? Steve and I Will Be Sure to (Cough) Take Your Advice to Heart (Snicker).
by John Paczkowski
Posted on July 10, 2009 at 8:29 AM PT
“Eric is obviously doing a terrific job as CEO of Google, and we look forward to his contributions as a member of Apple’s board of directors. Like Apple, Google is very focused on innovation and we think Eric’s insights and experience will be very valuable in helping to guide Apple in the years ahead.”
–Apple CEO Steve Jobs, August 2006
“Apple is one of the companies in the world that I most admire. I’m really looking forward to working with Steve and Apple’s board to help with all of the amazing things Apple is doing.”
–Google CEO Eric Schmidt, August 2006
Google chief Eric Schmidt has some words of advice for outsiders insisting he should recuse himself from Apple’s board of directors following the unveiling of Chrome OS, an operating system that will presumably compete with Apple’s Mac OS X: You can have my Apple board seat when you pry it from my cold, dead hands.
Speaking at the Allen & Co. Sun Valley conference, Schmidt, who has been an Apple director since 2006, said he sees “no issue” with him keeping his board seat. “I recused myself from iPhone because it was a direct competitor,” he said, acknowledging that he no longer participates in mobile phone discussions at Apple board meetings because of conflicts of interest. “But there is no change at the moment….I’ll talk to the Apple people. At the moment, there’s no issue.”
And if one should arise? If Apple (AAPL) should look askance at Google’s (GOOG) decision to launch its own OS? Or if the Federal Trade Commission probe into whether Schmidt’s seat on the Apple board of directors violates federal law picks up some traction? Well, does anyone really think that Schmidt won’t be able to keep his seat? C’mon.
As John Gruber noted over at Daring Fireball earlier this week, “I don’t understand why so many outsiders are concerned about this. If Steve Jobs and the other members of Apple’s board think Schmidt’s spot on the board poses a competitive conflict of interest, they’ll ask him to leave. If they don’t, then what’s the problem? Does [anyone] really believe he has a better grasp of Apple’s competitive position versus Google than Jobs? Does [anyone] think Jobs is too shy or polite to confront Schmidt?”
Comments
I don’t think Apple and Google compete in operating systems.
How many Android handset makers would turn down an iPhone OS license if Apple offered to sell them one? How many PC makers who are working now on Chrome OS would turn down a Mac OS license? Even if Apple charged for those licenses and Google’s were still free, Apple would still crush Google in this space. In both cases, the Apple system has all of the promised features of the Google system (e.g. Mac OS has an HTML 5 browser on Unix core with no viruses today and for the past few years, not starting in late 2010) plus much more (3D compositing animated UI, rich multimedia support).
So not only do they not compete, but Google is getting into markets that Apple has already passed on many many times.
Posted by Fred Hamranhansenhansen at July 10th, 2009 at 3:00 pmMicrosoft’s business relies on business customers, Apple’s relies on individuals. Interestingly, neither has shown anything other than a passing interest in “netbooks”.
Unless Apple unveils another tablet computer, or Microsoft decides to re-invent Windows (again, as they did with Windows CE) they are both ceding this ground to Google (for now).
It will probably get more interesting at some point, especially once there is an actual product.
Keep in mind there is still no chrome browser for Linux or OS X. Best laid plans, etc.
Posted by Mac Beach at July 10th, 2009 at 7:16 pmThis is a bit silly; Apple and Google aren’t in competition. They are ganging up on Microsoft. That is why Eric Schmidt is on Apple’s board. Apple hits MS from on high while Google hits it from below the belt.
Android is not in direct competition with the iPhone; it’s too simple for that. It’s designed to take out Microsoft’s cell phone OS. By the time that Android gets near the features on today’s iPhone, Apple will have moved on to better things. What? We don’t know, yet.
Chrome is too simple an OS for Apple customers. What Google is doing is cleaning up Linux so it is finally a desktop that doesn’t look like Windows. It will likely look like the Mac and Apple won’t complain.
Chrome won’t be very good. It will be just good enough for the web on cheap equipment, but it will have better security than Windows 7. Google will be aiming Chrome at its Web Apps and that won’t hurt Apple.
The point is that neither partner can afford to say they are out to get Microsoft. But, Chrome is designed to carve away at Microsoft’s low end computer market. This is a market that Apple doesn’t want, because there is no money in it. Google doesn’t need to sell hardware like Apple does, but it needs to have people use its search engine and to read its ads.
Nobody can trust Microsoft. MS has been trying desperately to throw a monkey wrench in Google’s business plans. That is what the Yahoo merger attempt was all about. MS has a history of knifing its competitors and partners in the back. The Chrome OS prevents that sabotage and gives Schmidt some revenge.
Posted by Louis Wheeler at July 11th, 2009 at 10:32 pm