Start of Google and Apple Rivalry
The Google Apple Rivalry promises to one of the Greatest in Technology History with both of these iconic companies fighting on multiple fronts in Hardware and Software.The Technology Industry has seen some great rivalries in the past but this one promises to beat them all.Note Google and Apple were partners once with Google’s Eric Schmidt occupying a Board seat at Apple until recently.However Apple’s entry into the smartphone market started the competition between these companies as Apple’s closed ecosystem posed a threat to Google’s advertising model based on open systems and software.Google came out with its own Android Operating System for smartphones to compete with the hugely successful iPhone.
OK, bear with me hear, but I’m going to put some pieces together to explain why Google and Apple went from being great friends, to arch-rivals.At the time, this looked like a coincidence:
August 3rd, 2009 – Eric Schmidt resigns his position on Apple’s board of directors, citing “conflicts of interest” in some of Apple’s “core businesses.”November 9th, 2009 – Google acquires mobile advertising platform AdMob for a reported $750M.December 28th, 2009 – Consumer Groups start lobbying the FTC to block the AdMob acquisition on the grounds of decreasing competition in the market.March 11th, 2010 – The FTC suddenly starts asking Google’s rivals, what they think of the deal.Yesterday, April 8, 2010 – Apple CEO Steve Jobs let’s the following slip during his Q&A with the press:
“we tried to buy a company called AdMob… but Google snatched it away.”
Google Partners Motorola and HTC providing strong competition to iPhone
Currently Motorola and HTC,Google’s partners in Android are the only meaningful competition to the iPhone.Google and Apple are also fighting on the ad mobile front with Apple launching its own iAd platform to counter Google’s adMob acquisition. Traditional Market Leaders like Nokia and Research in Motion are fighting to catch up with their prospects looking bleak.Nokia has managed to sell just 100,000 phones in 6 months of its much hyped N900 smartphone launch.Compare this with 2 million Motorola Droid phones in the quarter of its launch and wildly successful HTC’s EVO launch by T-Mobile.Research in Motion also remains under strong pressure to come out with a decent Touch Phone with its “Storm” launch proving to be failure.Apple is now fighting back hitting HTC with patent suits.Note HTC has counter sued Apple ago.This would increase the number of Apple’s disputed patents to 14 from the current 10.
Apple recently sued HTC over patent infringement indirectly targeting Google which uses HTC to make its Nexus One phones.HTC today tried to retaliate back by suing Apple back for infringing on its patents.However HTC is a bit player in the larger scheme of things.Its patent portfolio is quite small compared to that of Apple or Nokia which have a huge number of patents generated through their monstrous R&D expenditure.This suit will not have any major impact on either of the parties in my view , its a small skirmish in the larger war being fought by these Technology Giants
Apple Inc. filed another complaint against HTC Corp., alleging the Taiwanese smartphone maker violated four of its patents related to software and technologies used in smartphones and other mobile devices.In March, Apple sued HTC, which makes a number of smartphones using Google Inc.’s Android mobile software, for violating 10 patents in a lawsuit with a federal court in Delaware. It also filed a suit involving 10 patents with the U.S. International Trade Commission. The complaints pertained to Apple’s touch-screen control, hardware and software, and sought to ban the sale of phones such as the Nexus One, sold directly by Google, as well as phones using Microsoft Corp.’s Windows Mobile Devices.
Google opens another Front launching Google Music targeting iTunes
Google is on the verge of launching a free music service to rival Apple’s hugely successful iTunes digital media store.iTunes had been a crucial cog in Apple’s resurgenece as a Technology company during the iPod launch.Google is targeting the iTunes store just like the iPhone.Microsoft proved in its win during the Internet Explorer vs Netscape battle,that it is tough to fight an application using a monopolistic platform.Microsoft once the 800 pound gorilla of the Technology sector is now fast facing oblivion.Google will use its wildly popular Search platform to gain an edge over Apple.Google has been successful in partnering with handset vendors,now it remains to be seen if it can repeat its success with Music Companies as well.
Google is coming with music search. According to WSJ, its almost confirmed that Google is going to launch its music search which offers downloads of desired music direct from Google.Reportedly, Google is partnering with leading music sellers online to provide the music downloads in much better way. As usual, Google is spreading its roots to different markets. We’ve seen Google Books, Froogle, Voice, Nexus One, Labs, etc.The interesting part of this move of Google is very simple. Mobile technology growing day by day in the form of Smartphones. Currently Apple is the leader in offering online music through its iTunes online store which is grabbing 28% online music market only in US. Google is already sent clear signals of the attack on Apple with its Nexus One. But failed to reach expectations. Now with this new market strategy, it will be a very interesting technology war in future.
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