Google’s Schmidt: Apple’s business practice not “the adult way”

It’s fair to say that Eric Schmidt’s relationship with Apple is complicated. He joined Apple’s board of directors in 2006, but left in 2009 following increased competition from Google (where he was chief) in the smartphone market place. In fact, many think his position at Cupertino is what inspired the sudden change from BlackBerry-like prototypes running Android to the more iPhone-esque designs that we’ve become accustomed to. Read in to that what you will. My thoughts: competition is good.

Having removed Maps and YouTube from iOS’ default apps list, it obviously wasn’t going to take long for Schmidt to respond with some not-so-kind, and poorly disguised digs towards Apple. WSJ quotes:

Obviously, we would have preferred them to use our maps. They threw YouTube off the home screen [of iPhones and iPads]. I’m not quite sure why they did that. The press would like to write the sort of teenage model of competition, which is, ‘I have a gun, you have a gun, who shoots first?’

The adult way to run a business is to run it more like a country. They have disputes, yet they’ve actually been able to have huge trade with each other. They’re not sending bombs at each other. I think both Tim [Cook, Apple's CEO] and Larry [Page, Google's CEO], the sort of successors to Steve [Jobs] and me if you will, have an understanding of this state model. When they and their teams meet, they have just a long list of things to talk about.

He was also asked whether or not Apple and Google had spoken directly regarding any of the lawsuits, but Schmidt didn’t give a direct or clear response. He simply stated that the two companies are aware of each others’ plans, and that he was unsure as to why Cupertino was suing manufacturers instead of Google directly.

Via: CNET
Source: WSJ  (Subscription needed)

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I am a big fan of Apple products.  But Apple is acting more like a spoiled child, by ranting and suing everyone.  Tim and company are taking their eyes off innovation and devoting too much time to legal.  Pretty soon Android will be seen as more innovative and smarter.  Samsung has a better phone that iPhone 5 at the moment.  The real contest will be played out in the next 18 months.  Unfortunately for Apple my bet is that Android will be more dominant, unless Apple seriously gets back on track by developing superior software.  

"many think his position at Cupertino is what inspired the sudden change from BlackBerry-like prototypes running Android to the more iPhone-esque designs that we’ve become accustomed to."

 

Really? What sane person thinks that? Google purchased Android in 2005, where Andy Rubin had been developing the OS since 2003. That would have been well before Schmidt joining the Apple board. Not much is known about the early days of development but what is clear is that the first version to see the light of day was intended to run on a variety of handset designs and had full support for both physical keyboards as well as touchscreens. There were two prototypes released and one did look much like a Blackberry but the other decidedly did not, and the SDK that accompanied them provided equivalent levels of support for both designs.

 

Note that development on the iPhone did not begin until 2005, two years after Android. Being developed at more or less the same time, it isn't surprising that there is a family resemblance as they draw on the same predecessors as well as the same contemporary hardware environment.

 

Many people should perhaps read Wikipedia before writing historical fantasy.

@pjc: Are you claiming Wikipedia is a reputable source for facts? If so, you are showing a bit of naiveté. Regarding the quote you have a problem with... many people think that Google's designs for a mobile phone were originally simplistic and just an evolution of the "BlackBerry" model. Their early designs didn't have a buttonless all-touch design. After Schmidt got wind of Apple's design (while he was on the Apple board of directors), all of a sudden (in months), Google's designs magically transformed. Lastly, your point that "development on the iPhone did not begin until 2005" is patently incorrect. If you know the history of Apple's development on such devices, they had an early patent on an iPad-like device (which uncannily looked just like today's model) many years BEFORE 2005. Apple decided to not create a large device at that time, but rather to shrink the design to make it a handheld design. If you knew REAL history (and not the kind on Wikipedia), you'd know Apple had extensive (a decade) of research and development in such devices during the 1980s -- remember their "Newton" PDA. It was decades ahead of the competition. So no... Google's design doesn't draw on the "same predecessors" since much of the Newton development & findings never made it to the board room (where Schmidt was intently listening). Google only had the BlackBerry as a "target". In those days, there was no concept of a smartphone, as we think of today. Apple created that concept of a multitouch device with a multitude of user-loadable apps through the "air" -- allowing it to do nearly anything. In 2005, BlackBerry's did NOT have a GPS receiver (they used triangulation for E911), they didn't have an accelerometer, no WiFi transceiver, and definitely no user-loadable apps. That is what Google was copying in 2005 -- until Schmidt heard about Apple's ideas. Of course you won't believe anything I've said. So I suggest you go to REPUTABLE sites to research the facts.

Run business as countries?  Brilliant.   

 

That would have made Schmidt head of the spy agency of Google while he served on the Apple board.

Interesting last sentence.  Looks like Schmidt would prefer Apple sue Google vs. Samsung, HTC, etc.  

 

Add me to the list of suspicious people who things Google's adults routinely route iOS clients in a manner to slow them down when accessing YouTube,  in searches, etc.  Run your own test where you have a stable connection.  Sometimes it takes foreever to load, followed by a 5-10 minute wait when things load rapidly, then slowly...not the same on vimeo, or other streaming sites/services and never with Yahoo search. 

JoeyMcCoy 6 pts

The problem with running 2 companies like countries is - they aren't countries. And if you want your maps to stay on the iphone don't deny apple turn by turn because you don't want them to have what's on an android phone.

EdRoss6 5 pts

Call me credulous, but I take Schmidt's comments at face value here, and the way this article dramatizes his comments seems to bolster the point he was making:

 

Big business is big, technical, and complicated; so Google and Apple have a big, technical, complicated relationship.  A good news story is concise, personal, and simple to grasp, so news coverage of this relationship is often a distortion into a dramatic, ad hominem, conflict.

@EdRoss6: You said that any news coverage of complex relationships often becomes personal attacks. Not sure I agree. As far as Schmidt's quote, he didn't say much. The only thing he said was his wanting companies to behave as countries -- cooperating on some things even if they disagree on others. This is obvious and I'm sure all CEOs will agree. The problem occurs when companies (like countries) do subversive/underhanded things to their competitors. THAT is what Google has been accused of (and not just by Apple). I see Schmidt's quote as an attempt to over-simplify a complex relationship -- one in which they must claim some fault.

Rewind to 2007, the original intent was Google software services running on the iPhone. Unfortunately when Google also shifted to hardware that changed things.

 

See excerpt of Schmidt in the 2007 keynote. I wonder if he already envisioned Google producing hardware during this talk http://www.youtube.com/watch?v=7vtdamKEcH8

ElectricGuy 5 pts

Didn't Google deny Apple turn by turn directions? Where were the adults when that decision was made?

Dimli 5 pts

 ElectricGuy No Google offered them to extend their contract for Google maps with turn by turn.  This new contract would require a Google icon to be present on the maps though.  Apple refused the deal.  Not saying it was good or bad for Apple to do so, but it definitely wasn't Google denying Apple turn by turn.

ElectricGuy 5 pts

 Dimli  ElectricGuy We can pick the words we use, but unacceptable terms are effectively denial. The writeups I've read treat this as a Google issue.

 

Regardless, not the actions of adults.

@Dimli: In the real world of "big business" and "complicated relationships"... as everyone describes this relationship. Did you ever imagine that the "offer" you credit Google as making, had extra conditions that made it unfair for Apple. Google was not only asking for additional money (i.e. Google increased the license fees they were charging Apple) AND Google expected Apple to cross-license other Apple-owned technology. That was too much for Apple to take. So they went on their own. And I'm glad they did. Yes, Apple's new Maps software isn't as good as Google's..... but it will be. And I believe Apple has the potential to innovate more than Google.