Schmidt: iPhone good for Google

By Yi-Wyn Yen

HALF MOON BAY, Calif. – Google chief executive Eric Schmidt passed by the Apple store in downtown Palo Alto Tuesday night and saw a line of people waiting outside. Schmidt joked that perhaps Apple (AAPL) fans just like hanging out at the store, but he assumed they were waiting for the next shipment of the iPhone 3G to arrive.

The success of the new iPhone has the Google (GOOG) top exec excited about his company’s own mobile efforts. “It shows you the power of a device that is a step forward,” said Schmidt in an interview Wednesday at Brainstorm Tech with Fortune senior writer David Kirkpatrick. “The iPhone has a fully functional browser. We can show desktop ads, not mobile ads. That’s a huge change from our perspective.”

Google started to aggressively move into the mobile market in the past year. It is building a mobile platform called Android, and handset makers will deliver the first phones using the new Google software by the end of the year. Google also entered the Federal Communications Commission’s wireless auction last fall and succeeded in getting Verizon (VZ), the 700 MHz broadband auction winner, to commit to building an open-access network.

Schmidt said the innovation and power of the iPhone means better applications and web browsing for consumers and ultimately good news for Google. “The iPhone’s competitors all have devices or devices coming out. It’s really simple. A phone is a GPS, a camera, a computer, and a browser,” he said. The combination of those four means more market opportunities for Google, he added. Schmidt is a director on Apple’s board.

Schmidt predicted that the best applications for social media – now found on networking sites like Facebook and MySpace (NWS) – will happen on mobile phones. One application for Android coming out later this year: A location-based service that tells you where you are, what buildings are around you and what businesses are inside. “The most interesting social applications will be mobile-based because people are always moving,” he said.

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Posted By Anonymous : August 4, 2008 4:57 pm

“I don’t think you are comparing apples to apples (no pun inteded). Google doesn’t make any hardware.”

LOL apple isn’t manufactuering the I-Phone either. Why does everyone think Apple does everything?

Posted By Martin, Chicago, IL : July 25, 2008 10:26 am

Apple will need to provide a broader line of phone products. I am sure the IPhone is great but people still do not want to pay the price. Apple could look at developing a phone that doesnt have all the extras. People still get the free phones with a new contract. Alot of people are not looking for the top of the line phone.

Posted By Tony, Phila : July 25, 2008 9:10 am

I’ll put my Samsung Instinct up against Apple’s iPhone any day!

Posted By Craig, San Francisco, CA : July 24, 2008 11:33 pm

I don’t think you are comparing apples to apples (no pun inteded). Google doesn’t make any hardware.

Posted By Tom, Richmond, VA : July 24, 2008 10:58 pm

I am really shocked to read the negative comments here about Google. The entire article has Google Tech praising Apple…go figure. Google is great, Apple is awesome. I think it may be possible that some do not understand what open access is going to mean to them.

Posted By Brenda, Southeast Kansas : July 24, 2008 9:00 pm

This whole Google getting into the phone business is laughable. They remind me of Microsoft, no where good to grow, and way too much money for their own good.

Apple will take over the mobile market over the next 5 years, and gain at least 50% market share. Most still don’t understand just how much better this Iphone is, then every other smart phone available now, and that will be available two years from now.

While Apple innovates, other imitate. Buy this stock today, as it will triple over the next 3 years.

Posted By Victoria, BC : July 24, 2008 3:22 pm

Now while traveling with your iphone you can access information to allow you to find bargains on the road.

http://www.searchtheentirecraigslist.com

Happy hunting!

Posted By Paul South Florida : July 24, 2008 2:22 pm

Goggle could learn something from Apple, creating a need is paramount when there is no market (e.g. iPhone). Not sure if Andrioid will create a new market or just another mobile OS.

Posted By Profess, San Diego, CA : July 24, 2008 2:12 pm

^^ I guess Google has some disgruntle employees.

Posted By Grips, Chicago IL : July 24, 2008 1:06 pm

Schmidt does not know how difficult it is to develop a business, bring up a innovative solution, that is why he is careless talking about iPhone. Hello Schmidt: Innovation is not easy… I suggest you go and ask the guys who do innovation in your company.

Posted By NL, Atlanta, GA : July 24, 2008 6:58 am

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