“When Eric E. Schmidt, Google’s chief executive, was named to Apple Computer’s board this week, it did more than signal a potential alliance between powerful companies. It touched off a wave of speculation about the motives of the man behind the move: Apple’s co-founder, Steven P. Jobs,” John Markoff reports for The New York Times.
“‘The old social networks in Silicon Valley run very deep,’ noted AnnaLee Saxenian, a leading scholar of the industry and dean of the School of Information at the University of California, Berkeley. ‘And this reminds us that Silicon Valley has a common enemy to the north.’ She did not even need to name the enemy she had in mind: Microsoft, the leading rival to both Mr. Jobs and Mr. Schmidt through most of their careers. Now, with the Internet era remaking the competitive landscape, their prospects for outdueling Microsoft’s Windows empire may be better than ever,” Markoff reports.
“There are many possibilities for a complementary strategy between their companies. This week, for example, Google announced that it was beginning to weave together a number of services that could be a Web-based competitor to Microsoft Office. And Mr. Jobs has skillfully driven a wedge into the dominant PC computing standard established by Microsoft’s Windows software and Intel’s hardware — the so-called Wintel alliance — by recently adopting Intel’s processor for Apple’s Macintosh computers,” Markoff reports.
Markoff reports, “Mr. Schmidt’s appointment set off chatter about linking the Google search engine to iTunes, Apple’s online music service — reinforcing Apple’s pre-eminence in a category where Microsoft is seeking a grip. That would also have broader implications for the entertainment industry, an industry repeatedly put on the defensive by both Apple and Google.”
Full article here.
Related articles:
Re: Google CEO elected to Apple Computer’s Board of Directors – August 30, 2006
Dvorak: Does Apple’s board addtion of Google’s Schmidt portend Apple-Sun merger? – August 30, 2006
Apple and Google cozy up to make Microsoft jealous – August 30, 2006
Google CEO to help shape Apple’s future – August 30, 2006
Google CEO Dr. Eric Schmidt joins Apple’s Board of Directors – August 29, 2006
This can only be GOOD!
I need me a Core2Google.
The problem with people thinking that this will have a significant effect on Apple is they have completely forgotten history. Apple has had boardmembers from companies that have done little or nothing positive for Apple. Just think of Intuit and its CEO.
Instead of linking iTunes to Google, why not link spotlight to google?
… a complete web office solution for .mac customers
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we all know the outcome.
The only thing we need for any new board member to do for Apple is to get the company refocused on customer service and a recommitment to innovation and excellence in products and services.
Stop the marketing machine and restart the emphasis on performance and quality.
I realize that board members tend to be more concerned about stockholders than anyone else, but taking the loyal customer base for granted is a blunder that will spell disaster for shareholders.
Participants in this forum will rail against this comment but you need to hear it anyhow: When MS finally releases Vista, no matter when and no matter how awful it might be, it will capture the media, sweep the world, and the light Apple has enjoyed this year will be dimmed.
The ONLY way Apple can contend with this reality is to take care of its fiercely loyal customers and quit taking advantage of us with delayed improvements to software, and weak performance improvements in its machinery.
I hope their alliance is more than adding google search in itunes
forget Eric E. Schmidt, I wanna see Walter E. Smith on Apple’s Board!!!!!!!!!!!
Walter E. Smith, you dream it we build it.
Just imagine, if google can go from a tiny company to a 100billion company in less than 5years, you know there is something missing on earth, FAIR COMPETITION.
take a look at adobe, they bought macromedia, now there is no decent tool to edit photos with, basicly the way the system is working right now is, you either get it all or nothing at all, and this type of system can not survive forever, it will evantually become blured and more companies will show up such as myspace and youtube and many many others, in the end google will lose power and so will everyone else.
in other words itunes keeping up with 85% of music industry share is very unlikely, once you are on top there is only 1 direction to go to.
<sarcasim>We all know it would be impossible to add a Google toolbar to iTunes without naming a Google CEO to the board of directors.</sarcasim>
Apple associating itself with google is for 1 reason only, ADVERTISING INCENTIVES, which means Apple will ultimately have to kiss Google’s ass, while Google kisses Apples ass, both assuming they will take over the world together, the same way AOL and TIME WARNER thought they would, and this self-contained-distraction will result in them living in a bubble sort of like microsoft and as a result there will be 1000’s of other companies that were anti apple and 1000’s of other companies that were anti google to come together and start new companies, which will result in stiff competition and ultimately apple’s shares will fall to $30 or less and google’s shares will fall to $200 or less.
Apple & Google = dinosaurs
OH YEAH!
The Axis of Good vs The Axis of Evil.
Let the furr fly!
While I am excited about the future of Apple I have a dark cloud of doubt lingering over my head with shaddows of Enron.
Could Steve Jobs taking less of a up-front role in WWDC and Eric Schmidt be a prelude to a resignation because of the stock issues? Could it be that these moves are Steve’s way of preparing for a worse case situation?
Please tell me I am crazy! Please slap me and awaken me from my nightmare!
Since CBS sold Marketwatch.com to nasdaq, they figured a way to put a positive spin on just about anything in a blury manner so that they would not get in any legal trouble, and it is exactly since then the stock market started rising up, altho it has burst a little, the current prices still not anywhere near 2002 prices which means they do not represent true values.
I am amazed noone has investigated MarketWatch.com so far.
Bloomberg is okay and fair but MarketWatch is owned by the evil people.
There are a few people here that seem to think that Google and Apple have anounced a merger. There is a big difference between a board seat and a merger. Having Google in the boardroom can only be positive for Apple.
“The ONLY way Apple can contend with this reality is to take care of its fiercely loyal customers and quit taking advantage of us with delayed improvements to software, and weak performance improvements in its machinery.”
Yeah, that’s been the ticket for taking market share away from Microshaft the last 30 years.
moron
Oh and for “Google is an ignorant company”
“in other words itunes keeping up with 85% of music industry share is very unlikely, once you are on top there is only 1 direction to go to.”
Being on top has worked for Microshaft for the last couple decades. So it is not so “unlikely” that iTunes will be able to keep up with 85% or more of it’s share.
moron #2
Yeh, Napster was able to keep its #1 spot for a couple of 0.0001 DECADES.
“The ONLY way Apple can contend with this reality is to take care of its fiercely loyal customers and quit taking advantage of us with delayed improvements to software, and weak performance improvements in its machinery.”
What the hell are you talking about? You remind me of these commercials that sell drugs with made up sounding afflictions. No susbstance.
Delayed improvements to software? How? Where? WTF are you even talking about?
Weak performance improvements in its machinery? They just switched and entire product line to a new processor to stop the whining and bitching from nerds like you. The systems they have now are faster than anything they’ve ever sold, and cheaper too.
Are you on crack? Where is the evidence for your claims? Did you just have a need to hear yourself talk?
Call it just a friendly aliance of cutting edge tech friends against a common, behind the Eight Ball by a decade, foe.
But no, it’s not a merge.
To spin a twist on an old Kennedy quote:
“Apple & Google see tech possibilities and say ‘Why not?”
Microsoft sees them and says “How the heck?”
macromancer-
TOUCHE
And so what has board member Al Gore done to effect the prospects of Apple???????
Please, somebody tell me what positive impact Al Gore has done for Apple? I have yet to see a photo of the guy with and Apple product in use.
I agree with Shadowself. Too much is being made of this. Schmidt having a seat on the board is great because he’s obviously a very intelligent guy with a great employment pedigree, but it doesn’t mean that Apple is going to start merging with Google.
“Google is an ignorant company” wrote, “take a look at adobe, they bought macromedia, now there is no decent tool to edit photos with…”
Sorry, I gotta call you out on this. How did the Adobe/Macromedia merger make it so there’s no “decent tool to edit photos with”? First of all MM didn’t offer a photo editing package, and don’t bring up Fireworks because that’s always been a web graphics app. Using it to edit photos is like using a hammer to put a screw in the wall. Second, they haven’t killed any of MM’s apps yet. Everything that was available a year ago is still available today. Third, if you don’t consider Photoshop a “decent tool”, that just tells me that you don’t know how to use it. Sure, Photoshop has it’s share of problems, but there has never been another app that can even come close to competing with it. Don’t get me wrong, I’d rather the merger didn’t happen, as now Adobe is monolithic and will potentially become stagnant, but the merge didn’t affect the tools we currently have. Photoshop shouldn’t suffer regardless because MM didn’t compete there.
Why when I wear my t-shirt that says “3% Market Share” on the back do people come up to me and say “Apple owner, eh?”