“Mountain View, Calif.-based Google said net income rose to $1.97 billion, or $6.13 a share, in the quarter ended in December, compared with $382 million, or $1.21 a share, in the same period a year earlier. Net revenue rose to $4.95 billion,” Letzing reports. “Excluding special items, Google said earnings for the quarter were $6.79 a share. Wall Street analysts were expecting Google to post earnings excluding items of $6.48 a share, and $4.92 billion in net revenue, according to Thomson Reuters data.”
“Google shares, however, fell more than 4% to $557.14 in after-hours trading, following the earnings announcement,” Letzing reports. “Collins Stewart LLC analyst Sandeep Aggarwal chalked the stock movement up to possible disappointment with the average price paid per click on a Google advertisement in the quarter. Google said the average price paid by advertisers rose 5% compared to the same period last year.
“Asked about recent reports that Apple Inc. may opt to use Microsoft Corp.’s search engine as a default option in its popular iPhone device instead of Google’s, Schmidt said that ‘as far as I can tell, our business structures with Apple are quite stable,'” Letzing reports. “Google has long taken a prominent place on the iPhone with its search engine and other services. Schmidt, a former Apple board member, said the company has ‘a special spot in my heart.'”
Full article here.
MacDailyNews Take: Ahh, the distinct warble of the Bespectacled Mole.
The reason Apple has a “special place” in Eric’s heart is because that’s where he used to get his best ideas.
Google CEO Schmidt: “Apple has a special spot in my heart”
“But if I have a chance to drive a stake through Apple’s heart I will.”
I have a special spot in my lower intestine for Google.
Isn’t that special?
I didn’t know Apple make peacemakers…
The Ultimate Super Snitch…
sorry, I mean, pacemakers…
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Yes, but as the saying goes, “actions speak louder than words.”
So lets see, after sitting on Apples board for several years learning as much as he could about how a great company operates, his company:
1. Developers the Chrome web browser = (Safari)
2. Develops the Chrome mobile OS = (OSX iPhone)
3. Develops a Nexus one phone clone.= (iPhone)
4. Outbids Apples interest in Admob.
5. Starts selling movies on YouTube = (iTunes store.)
Looks like Mr Schmidt also knows the saying “Keep your friends close and your enemies closer.”
Why must a state of “war” exist between Apple and Google? It seems that the tech “press” has cooked this one up to get web site hits.
They want to cook up a replacement for the Mac vs. Microsoft flame wars that keep untold web sites afloat. With Apple’s success and domination in the mobile space, the old flame bait has lost some of it’s teeth.
Sure, Apple and Google compete in a few areas. Both will succeed and fail in different areas. But, to me, it seems that Apple and Google are more kindred spirits than enemies and what competition there is tends to be more or less friendly.
I hope it stays that way.
Competition used to be a more gentlemanly pursuit… or should I say, gentlePERSONly.
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Spot? It’s called a target.
its hard to bag on Google, but wow, when Schmidt was in the Apple board he sure took some great notes.
Well if it isn’t Dorian Grey
Can’t wait for Apple to I introduce its own Internet search engine and maps application for the iPhone. Goodbye Google.
Google is a strange company. For many years we wondered how a company based on ad clicks and search could evolve to a broader business base. I think Google itself didn’t know what it wanted to become. It was raking in the dough, buying up Picasa, Sketchup, and a bunch of other web apps, but not really creating a unifying experience. Google’s relationship with Apple provides direction that it can’t develop inside. Everyone see’s the success of the iPhone and iTunes and is trying to duplicate this, Google is no different. It it’s case, to maintain access to the desktop, it’s inevitable that it has to create it’s own. It will copy the most successful aspects of both Apple and Microsoft to get there.
Other than being annoyed every time Google copies them, Apple’s business model is more focused on high margin Quality over Quantity. Google doesn’t have the engineering design nuance or patience to do this. Instead, they will copy what works and approach it from a technologically sound, esthetically challenging perspective, and try to squeeze Microsoft out. I see this more as a Microsoft in the middle, with Google on one side, and Apple on the other.
Why must a state of “war” exist between Apple and Google? It seems that the tech “press” has cooked this one up to get web site hits.”
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If anything I’ve eve read about Jobs is true, then he ain’t happy about Google’s recent forays into’s Apple’s business models..
It’s one thing to compete and drive innovation, the problem is that Google has not innovated anything. They’ve basically copied what Apple has done,( minus the eco-system Apple has built,) and slapped a better resolution display on it and called it a “superphone.”
Well said, Squirrel Boy!
@Gone Nuts, agreed. Google’s product/service offering is a dog’s breakfast. I can’t even tell what Google services I have, they’ve never taken any steps to add value by linking them together in ways that make sense (yet they seem to link other services together in ways that make no sense).
When my office moved, we had to change our physical street address with Google in 5 or 6 different places manually. On the other hand when I personally signed up for some other Google service, it permanently linked the new service to my AdWords account at work.
Why can’t they develop a unified approach to user interface? That would seem to be a minimum requirement for a company that only “sells” two things: information and experiences.
There is little room in Tupolev’s heart for anyone but Tupolev.
@ Ramius…. milk just shot out my nose.
there are other web engines with supposedly superior algorithms, so it’s not impossible for Apple to go ahead and buy one and attach their ‘streaming’ & ads technology that they recently bought.
the thing is there are so many things that Google simplifies for Apple, by allowing them to grab a bunch of services under one roof. The thing is they could possibly lose out on other innovations that Google provides in the future.
Apple could very well buy up a bunch of smaller companies and use their ecosystem to promote their own search engine, with a possible advantage in content (giving the providers a cut of the action), and buying up a GPS company.
Once Apple gets out of this exclusive deals… the iPhone will spread and continue to gain marketshare… obviously much faster the OS X (altho these people dont realize that the iPhone does run OS X). If Apple didn’t require this ‘guinea pig’ method to test out the iPhone via exclusive deals… it would have totally whacked RIMM/NOK to pieces via marketshare & more importantly mindshare…
-iPod known by name, not as just an MP3 player, altho it is one
More difficult of a challenge would be “iPhone” replacing/defining the word smartphone…
anyway… looking forward to getting back into AAPL options tuesday.
I think MikeK and Gone Nuts have nailed it on the head. Google is the new MSFT and they are even using Apple as their R & D like MSFT did and jumping into markets that Apple creates with me-to products, just like MSFT did. Don’t be surprised if they come out with a tablet/slate computer in the next year or so. They at least have a more viable OS than MSFT does.
Maybe their philosophy or strategy is the polar opposite of the crooked Archer-Midland-Daniels corp (Our enemies are our friends) – Googles is “Our friends are our enemies”!
@stucktrader
what/where are these superior algorithms??? Some of the very best computer scientist work in search…and given the vast sums to be had, surely these superior algorithms would be out in the world making masses of cash for their inventors…unfortunately it doesn’t seem to be happening. So perhaps your possibly ephemeral algorithms are a figment of wishful thinking and delusion? Or maybe like Brin and Page back when, they’re struggling for a sugar daddy venture capitalist?
Barriers to entry in search are very high.
Google using apple for R&D;? are you idiotic or what? That’s not even wrong.
That two-timing lying ex-girlfriend of mine has a special place in my heart, which makes me wonder if that’s how things get spun at the Schmidt house?
@Brulek
Obviously, the software Google develops is all done internally, but the idea of how to use it to make money I believe comes from taking Apple’s lead.
Do you seriously think Google would have Android OS or the Nexus One if the iPhone had not been developed? How about the touch interface – think Google would have thought that up? Apps? App Store?
just my $0.02…
Sure, Apple has a special place in Eric Schmidt’s heart. Just like Apple has a special place in Steve Ballmer’s heart.
Apple is Google and Microsoft’s research and development division.