Apple vs Google: MegaDeath match for the next decade in Mobile Computing!

Well written article. Apple failed to get AdMob and started hiring M&A guys and don’t want to lose out on the next big wave of Cloud Computing. Google is the king of the web and Apple is king of cool devices. Who will win?

Tensions in Silicon Valley’s special relationship began to emerge in late 2007, when Google announced plans to develop Android for mobile phones. Apple had unveiled its iPhone in January of that year, and it was clear that the two companies would spar in the smartphone business. Still, both were niche players, with more formidable rivals in companies like Nokia (NOK), Samsung, and Research In Motion (RIMM). Only after software developers began creating thousands of mobile apps, and it became clear that phones would become the computers of the future, did the conflicts begin to grow serious. Last summer, Apple refused to approve two Google apps for sale to iPhone users, raising questions about how much of a Google presence Apple would allow on its devices. In August, Schmidt gave up his board seat. “Unfortunately, as Google enters more of Apple’s core businesses,” Jobs said at the time, “Eric’s effectiveness as an Apple board member will be significantly diminished, since he will have to recuse himself from even larger portions of our meetings.”

Now the companies have entered a new, more adversarial phase. With Nexus One, Google, which had been content to power multiple phonemakers’ devices with Android, enters the hardware game, becoming a direct threat to the iPhone. With its Quattro purchase, Apple aims to create completely new kinds of mobile ads, say three sources familiar with Apple’s thinking. The goal isn’t so much to compete with Google in search as to make search on mobile phones obsolete. “Apple and Google both want more,” says Chris Cunningham, founder of the New York mobile advertising firm Appssavvy. “They’re gearing up for the ultimate fight.”

Apple spokeswoman Katie Cotton declined to comment on the company’s advertising plans or its relationship with Google. Google spokeswoman Katie Watson said the company would not make executives available for this story. She did provide a statement, attributed to Vic Gundotra, Google’s vice-president of engineering: “Apple is a valued partner of ours and we continue to work closely with them to help move the entire mobile ecosystem forward.”

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