“The success of the new iPhone has Google’s CEO Eric Schmidt excited about his company’s own mobile efforts. ‘It shows you the power of a device that is a step forward,’ said Schmidt in an interview Wednesday at Brainstorm Tech with Fortune senior writer David Kirkpatrick. ‘The iPhone has a fully functional browser. We can show desktop ads, not mobile ads. That’s a huge change from our perspective,’” Yi-Wyn Yen blogs for Fortune.

“Google started to aggressively move into the mobile market in the past year. It is building a mobile platform called Android, and handset makers will deliver the first phones using the new Google software by the end of the year,” Yen reports.

“Schmidt said the innovation and power of the iPhone means better applications and web browsing for consumers and ultimately good news for Google. “The iPhone’s competitors all have devices or devices coming out. It’s really simple. A phone is a GPS, a camera, a computer, and a browser,” he said. The combination of those four means more market opportunities for Google, he added ,” Yen reports. “Schmidt is a director on Apple’s board.”

Full article here.

[Thanks to MacDailyNews Reader "Judge Bork" for the heads up.]

In an interview early this year, Apple CEO Steve Jobs was said to be “skeptical about Google’s decision to develop smartphone software… ‘Having created a phone its a lot harder than it looks,’ he said. ‘We’ll see how good their software is and we’ll see how consumers like it and how quickly it is adopted.’ In seeking not to get locked out of the mobile phone world, ‘I actually think Google has achieved their goal without Android, and I now think Android hurts them more than it helps them. It’s just going to divide them and people who want to be their partners.’” – The New York Times, January 15, 2008