Apple and Google Are Up to Something!

Everyone’s going to be rival with google; MSN, Yahoo and now Apple… who’s next?

Hmmmm, co-operation in the mobile phone market between two heavyweights like these could lead to some really interesting scenarios. There is little point in fighting each other if they can share R & D, marketing, etc for a common product. Doubt if we’ll see a merger though.

Yes, I tend to agree with your assessment. There’s something there that we’re not seeing at the moment. The problem, which I’ve been writing about since the beginning of the year, goes beyond just the mere presence of Schmidt on Apple’s board. If you and dig through Apple’s annual reports and SEC filings, there are numerous individuals with ties to both Apple and Google in Apple’s governance structure, especially on its’ current and recent boards. I won’t bother to mention the details here, but the documents are public record, so anyone can go back and confirm my impressions.

In reality, they are just a bunch of friends in the valley, who can do each other favors like sit on their colleagues boards. In practice, there are some very real conflicts of interest, especially in the mobile space that will become more pronounced as both Apple and Google take larger roles in mobile phone industry.

It could simply be a Plan B, in case Steve Jobs’ health ever becomes an issue again. I guess, we’re all just counting the 5 years, post cancer surgery to feel a bit better about his whole ordeal. Steve’s family in particular is in my thoughts. The rest of us would miss Steve, but not in the same personal way that his family would grieve.

Steve has built up the company back to place of prominence in the industry. Apple has been infused with a culture of hard work and great products. The great teams within Apple can continue to make great products, with out without Steve. No one doubts the strength of the teams and the depth of the bench. Apple has many talented and dedicated employees.

A merger with Google would make for a great Plan B, in case it is necessary. Google-Apple would be the most formidable hook-up in the information technology industry. The best front-end interface and hardware company combined with the best back-end and services company. There would not be a sector in computing that the combined company could not compete.

This would blow away any Microsoft-Yahoo hook-up. In Yahoo’s case, Microsoft would destroy many if not most Yahoo products and/or technologies. Microsoft would just try to transition as many customers and engineers as they could from Yahoo to MSN or Live or whatever marketing name they’ve adopted at the moment to push their Internet services.

Apple and Google would have zero overlap, apart from the successful iPhone and the announced Android project, would address the same mobile phone space. And even these parts would fit together quite nicely and could be made to play nice together.

A Google-Apple combined enterprise would have the resources, talent and clout to take on Microsoft and win on all fronts. This would be the first time in computing history that such a match-up against Microsoft would be possible; ever since the moment that IBM signed away the rights to the jewels of their own PC back in the early 80′s.

I’m not saying that Apple an Google will eventually merge, although it’s a possibility. There must be a reason to accept such potential conflict of interest. It may come down to friendships and wanting the counsel of others in the valley who are at a level of accomplishment that their opinion can actually matter. Or it could be something more.