The Google vs. Microsoft war received far more attention in 2009 (Google Web Search vs. Bing, Chrome Browser vs. Internet Explorer and Chrome OS vs. Windows) but Google is also waging a significant war with Apple. This will be the story of 2010. It is no wonder why Eric Schmidt, Google CEO, left Apple’s board of directors in early 2009. Below are five attacks Google has recently made on Apple:
1. Phone Wars — Android vs. iPhone. This is the best known Google assault on Apple. Android offers everything Apple’s iPhone does and more. Android is a free operating system and completely open to app developers. There’s no wrangling with Apple over admission to the App Store. To facilitate the creation of new Android apps, Google has offered six figure cash prizes in various categories to developers. While Google is playing catch up, it seems to be doing so at a very good pace.
Android is quickly becoming the choice for high-end device makers like HTC, which manufacturers the Droid Eris and expects to release many more Android phones in the next six months. While the Droid vs. iPhone debate seems to have gone to the iPhone, Android phones like Google’s own Nexus One will be more formidable competitors to the iPhone. It offers a 1 Ghz processor, 5 megapixel camera and the other hardware is comparable to the iPhone. Today, a French blogger got his hands on a Google Nexus One, which is supposedly only available to Google employees at the moment, and posted a video that shows off the Google Nexus One in action (warning: no sound and 10 minute video but for phone aficionados this is mobile phone porn). Additionally, the Google Nexus One will sell for substantially less than an iPhone. The Google Nexus One will have an unsubsidized retail price of $530, which is notably lower than both the iPhone and Motorola’s Droid. The only “catch” with the Google Nexus One is that initially the phone will only have support for the T-Mobile spectrum.
I suspect that at some point someone will wise up and use Android to make a competitor to the iPod Touch, which is essentially the gateway drug to the iPhone.
2. The Google Chrome Netbook vs. Apple’s Upcoming Tablet. This week the specs for the Google Chrome Netbook leaked. Its hardware beats virtually all other netbooks on the market and it has a 10″ touchscreen with multi-touch support. It will be able to support HD video. This is where it gets interesting… it will retail for approximately $300, according to many rumors.
Less is known about Apple’s upcoming tablet. It will be something like an oversized 10″ iPhone with no physical keyboard. More details will become available on January 26th when the tablet is expected to be unveiled. Preliminary speculation is that it will be named either iGuide or iSlate.
If rumors hold true about the price of the Google Chrome Netbook, then this is another significant attack on Apple.
3. Google’s Music Search vs. iTunes. This is a relatively minor attack but Google now streams music through its web interface. If you Google for an artist, some songs will appear and you can stream them in their entirety. In some cases, you can purchase the tunes as MP3s through the providers of the streams. I speculate that Google is merely dipping its toes in the water at this point but you can expect a full blown music search and billboard rankings in the not-so-distant future.
4. Talent and Acquisitions. Google and Apple are competing for the same talent base and also seeking to acquire the same companies. Competitive bidding erupted over AdMob, an advertising companythat exclusively serves the mobile phone market. Google won the bidding but is facing some hassles from the FTC over antitrust issues. Google and Apple locked horns again over acquiring the music service Lala (which also relates to #3, above). Both Google and Apple seem to be moving in the same directions in terms of acquisitions.
5. Streaming Television and Video. This battle is in its infancy but will erupt in 2010. Both are seeking premium content from major networks, including first-run television shows. Google is seeking to supplement its YouTube with this content. AppleTV was an utter failure but with the upcoming Apple Tablet, expect Apple to make a further push into this arena.
Lesson to be learned: if Google thinks a company offers a good product at too high a price or leverages its technology in an unfair way (like the “closed” App Store vs. Google’s “openness”), you can expect Google to open up its coffers and pull out the heavy guns.
It is unclear who will “win” this war but keep this in mind: The potential downside for Apple is substantial. Apple lives and dies by the sale of hardware and iTunes music. Google could drop out of the hardware business tomorrow and give up on the music business and it would hardly put a dent in the company.
In 2009, the story was Google vs. Microsoft. Only Bing-Bats will still be debating that in 2010. The real 2010 Google war will be with Apple.
You might also enjoy:
Pretty good article along the same lines that was published today…
http://www.techcrunch.com/2010/01/07/nexus-one-quattro-knives-apple-google/
Hi, I recently purchased a HTC Hero and I have to say that I love Android os it is by far the best mobile os I have played with. The endless supply of great apps makes every day with my phone an new experience.Sorry for my wall of text I just wanted to tell you my experience with the android os. Have a awesome day and thanks for a great blog.