Tags: US | TEC | Google | Apple

Google, Apple Spar in High-Tech Heavyweight Battle

Wednesday, 06 Jan 2010 06:27 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

The once-cuddly relationship between Google Inc. and Apple Inc. is morphing into a prickly power struggle as the ambitions and ideas of the technology trendsetters increasingly collide.

The growing use of high-powered phones for Web surfing has become a flash point in the brewing battle because both Google and Apple view the mobile market as a key to their continued success in the next decade.

The rivalry also in spilling into other products, including Web browsers, computer operating systems and digital music.

The tensions rose further Tuesday when Google unveiled its plans to sell its own cell phone in its latest bid to upstage Apple's hottest gadget, the iPhone.

Google is billing its phone, called the Nexus One, as a "super" phone — a device designed for people looking for something more advanced than the iPhone, Research in Motion Ltd.'s BlackBerry and other devices that serve as pocket-sized computers.

The Nexus One "is the closest thing to an iPhone challenger that I have seen so far," said Gartner Inc. analyst Ken Dulaney. "It's a very good piece of hardware."

Meanwhile, Apple is taking a stab at Google's heart by expanding into advertising sales. Apple let it be known that it had bought a mobile advertising service, Quattro Wireless, just before Google held a news conference at its Mountain View headquarters to announce the Nexus One.

Quattro gives Apple its own platform for distributing ads on the iPhone, and conceivably could serve as a marketing vehicle for a computing tablet that Apple is expected to be introduced near the end of the month. The acquisition also serves as a counterpunch to Google's proposed $750 million acquisition of Quattro rival AdMob, a deal that may be tied up in a regulatory review for several more months.

Apple didn't disclose Quattro's sales price, but the technology blog All Things Digital pegged it at $275 million.

Google hopes AdMob can help it become as dominant selling ads for mobile phones as it has been in placing ads on Internet-connected computer screens during the past six years. Most of Google's ads are tied to search requests on personal computers, a system that has propelled Google's annual revenue from $1.5 billion in 2003 to more than $22 billion in 2009.

Meanwhile, the iPhone has turned into a gold mine for Apple, with more than 30 million of the handsets sold in the past 2-1/2 years and demand still growing. It has helped boost Apple's annual revenue from $24 billion in its fiscal year 2007 to $36.5 billion in its most recent year ending last Sept. 26.

The iPhone's success also has spawned the development of more than 100,000 applications that make it easier to play games, read news, check the weather, get directions and shop on the handset.

Google acknowledges it also has benefited from the additional traffic that the iPhone has brought to its search engine and other services.

But the revenue that Google gets from the iPhone may diminish as the array of applications that consumers put on their handsets decrease the need to use search engines to find popular services, Broadpoint.AmTech analyst Benjamin Schachter said in a recent research note.

By designing and selling its own phone, Google will have another way to ensure its services remain within easy reach of people on the go.

Besides their technical prowess, Google and Apple are packing plenty of financial artillery.

They are Silicon Valley's two most prized companies, with each of their market values hovering near $200 billion. In another reflection of their power and influence, neither Google nor Apple are joining the high-tech herd at consumer electronics show in Las Vegas this week. They don't have to because the media flocks to them whenever they want to show off a new product.

A looming showdown between Google and Apple seemed improbable just a few years ago when they had a common disdain — and fear — of software maker Microsoft Corp.

"Now I think Google might be more focused on Apple than Microsoft," said technology analyst Rob Enderle.

Google and Apple also publicly fawned over each other's elegantly designed products.

The companies even shared personal ties, with Apple board members Bill Campbell and Al Gore, the former U.S. vice president, serving as advisers to Google in its early days. The companies' kinship culminated in Google's chief executive, Eric Schmidt, joining Apple's board in 2006.

Schmidt resigned as an Apple director five months ago, with Apple CEO Steve Jobs citing Google's expansion into "Apple's core businesses" as the main reason for the departure.

The Federal Trade Commission had been looking into whether Schmidt's dual roles on the boards of Google and Apple might stifle competition between the two companies. That now appears to be a dead issue.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Why Is Demand for Tablets Slowing?

Sunday, 27 Jul 2014 13:39 PM

Touted as the next big thing in computing when it was introduced by Apple in 2010, the tablet computer has seen a recent . . .

Caught on Radar: Beer-loving Bugs Swarm in Midwest

Saturday, 26 Jul 2014 17:23 PM

Mayflies have begun emerging from the Mississippi River in swarms that show up on radar like thunderstorms, coat roads a . . .

Solar Storm Could Cause Major Blackout on Earth

Friday, 25 Jul 2014 18:35 PM

Two years ago, Earth really lucked out. The New York Post reports that a series of massive solar flares just missed Eart . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved