Google and Apple: In Synch
Yesterday Apple announced that Eric Schmidt, CEO of Google, was elected to their board of directors. The argument for lining up the immense resources and expertise of these two companies is bulletproof. Apple has reached a point where their device strategy needs to service sophistication to fully leverage the customer franchise they have built. Google and it’s expansive service offering has come to the political boundary of hardware to ensure top of desktop position for its products.
One of the often cited shortfalls of AOL circa 1998 was the lack of a well developed hardware or device strategy. AOLMail had become beyond ubiquitous and was even accepted as a business email suffix. An AOL Blackberry or Sidekick would have been a much better platform to build from than what they have today.
With Microsoft’s impending desktop deadbolt Vista and their Zunepod on the way (how come nobody talks about XBOX360?), the timing of this union is a good one.
The form is also good: it is not some non-specific MOU between companies or a hastily planned JV. With a board seat, they will have time to sort out a working model for current products and a venturing model for future development.
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