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Google’s Eric Schmidt On War With Apple, “We’re Clearly Winning”

In an hour-long interview with Bloomberg, Google’s Eric Schmidt touched on a few things, namely the ongoing “war” as some would call it with Apple Inc. Luckily for Schmidt, he doesn’t have to do much convincing when says Google is “winning.” In a recent analysis, it showed Google holding to a strong market share of 72% in Q3, while Apple sat at 14%. Schmidt declared that 1.3 million Android devices are activated daily, a number that only seems to go up and up. 

Another interesting subject that was lightly touched on was Google’s overall plan for Android. By creating a free platform that allows hardware makers to gain revenue from, Google takes the initial loss, but knows the overall future profits will outweigh them significantly. By creating a new market for advertisements and other Internet-based services, Android will help usher Google onto the road ahead.

The core strategy is to make a bigger pie. We will end up with a not perfectly controlled and not perfectly managed bigger pie by virtue of open systems.

Classic Eric Schmidt.

Via: Bloomberg

  • theermine

    Google needs to get updates under control.. I’m very close to jumping ship to something else. It’s frustrating to buy a new phone only to have it never updated or if it is updated it’s still 1 or more behind what the cutting edge has.. I don’t want to hear excuses, updates should NOT be that difficult, if they are then they have a serious flaw with the entire OS that needs to be fixed.

    Been an Android Junkie from the start but, it’s getting old and I’m ready to get off the marry-go-round..

    Loved WinPhones back before smart phones were “Cool”.. Maybe I’ll give MS another shot at winning my business back. New Tablet and Phone in the next 6 months is planned.. Maybe that’s when I’ll jump ship.

  • sonicyoof

    14% is nearly Mac-levels of market share. Mac vs PC all over again…

  • joejoe5709

    I think it’s still way too close to call. At this point, I’d call us just about equals despite the market share. Apple is just barely starting to show signs of weakness and they’re really just one amazing phone (not the 5) with some truly amazing features (even if they all copy Android) behind the times. The iSheep aren’t anywhere near ready to jump ship just yet, but they’re certainly seeing slippage and they’re certainly considering Android more than ever. So I say if Apple can’t pull it together in 2013, they’re completely screwed. If they can come out with something unique and “innovative”, they’ll continue to be just fine. As far as new smartphone adopters and defectors from Windows Phone, Android is obviously grabbing most of those consumers. Eventually Apple will be left with the elderly and the die-hard iSheep.

    • Kami3k

      Yea when Android already has had more then double Apple’s market share for a while it’s too close to call… lmfao.

    • Abgar Musayelyan

      iJitterBug you say?

  • joejoe5709

    Nice. And they wonder why Android fanboys are practically militant when we’re constantly fed comments like this. It’s almost a call to arms. “We’ve got them where we want them, boys! ATTAAAACCKK!”

  • Hops

    The number of Apple phone owners switching to Android is small. The number of Android users switching to Apple is small. And globally the addition of new users is massively trending toward Android. Open always beats closed in the end, which is why Apple has minority market share in every hardware platform they sell in the long run. Open = choice. Closed = no choice.

  • Adamania

    #winning

  • http://www.facebook.com/people/Kirk-Ngo/1362282755 Kirk Ngo

    ITS true and the sites shows it.

  • http://twitter.com/Vizualize a.d.AM

    These execs must be really bored. Tim Cook is hanging with Brian Williams saying absolutely nothing. Larry Page is in Fortune talking about nothing. Eric is out and about uttering more nothingness. As if they would ever reveal anything new or future plans. They’ve been coached with talking points and that’s all we will hear.

  • Apple

    Apple Market Cap – 511B
    Google Market Cap – 229B

    Winning!!!

    • http://www.droid-life.com/ Tim-o-tato

      For now…..

    • http://www.facebook.com/gregyoung135 Gregory Young

      Market caps are not real evaluations of a company’s worth. It is based purely on speculation, aka investor reactions. That’s how companies are deemed “over-valued” or “under-valued”

      • http://twitter.com/SumanjiWorld Suman Gandham

        Exactly – people quote market cap without actually knowing what it means! #ignorance

    • Hunter

      3 mos. ago:

      Apple Market Cap – 660B
      Google Market Cap – 227B

      I’m no math expert, but it looks like Apple is going the wrong way…

      #Winning

      • Tim242

        Most of Android’s profits go to OEM’s. Apple and Google don’t operate in the same way. You should learn how the system works.

        • Kami3k

          Lol dumb ass.

          • Tim242

            Is that how you refute facts?

          • Kami3k

            What facts? Google has more then Android you dumb ass.

          • Tim242

            And Apple has more than iOS. Your point again?

          • Kami3k

            To counter what you are saying. Apple lost market cap, Google GAINED it.

    • JoshGroff

      You do realize this is referring to smartphone sales and not total net worth, so your argument is invalid.

      • Hunter

        You could argue a correlation though…

        • r0lct

          You could also argue just to argue.

          • Hunter

            Indeed good sir

        • JoshGroff

          If both companies sold only smartphones, and had a similar profit margin, then you could argue a correlation.

          • Hunter

            So you can only compare companies that have exactly the same offerings? Not sure if serious….

          • JoshGroff

            Ok, you can not compare Apples to oranges, that’s all I’m trying to say. One wouldn’t compare Wal-Mart’s net worth with Toys-R-Us and say Wal-Mart is clearly winning.

        • JasonIvers

          What correlation could you reasonably argue? Google is aiming for ubiquity. Apple is aiming for device sales profit margin. Both sides are winning the battle they’re actually fighting, and both are only fighting the other side’s battle as a side effect of their own.

    • http://twitter.com/MyndMayze John

      iSpot me an iTroll. Why are you even on an android site?

  • Destroythanet

    When it comes to market share, no doubt. Apple definitely isn’t complaining about the profitability of their products, though.

    • http://www.facebook.com/gregyoung135 Gregory Young

      Of course. I’m sure Tim Cook and the board are sitting at meetings disregarding their bottom line and instead worrying about their Twitter emotion index.

      • Greyhame

        I “LOL’d”. Nice.

  • http://twitter.com/reggie1225 Reginald Jefferson

    Smart plan. Take a small loss with an initial investment and earn revenue in the long run. Much better than what apple seems to be doing; huge gains at the start but declining gain later on from stagnation.

    • http://www.facebook.com/jeffaye Jeff Ayers

      Well it seems that you can compare Apple and Verizon in a way.The focus seems to be on short-term gain. With Verizon milking its customers every chance it gets, satisfaction goes down and people quickly look for other options. Although Google isn’t making huge revenue now, it is setting itself up for dominance later. Google is also hurting Apple a lot by lowering the expected cost for a product. People see the Nexus 4,7 and 10 and think why am I paying so much more for Apple.

      • Immolate

        Uh Jeff… Verizon is making a killing now because they invested heavily in 3G and then 4G technologies a long time ago. Verizon thinks ahead, and it consistently scores tops on customer service surveys. Most of the world aren’t phone divas. We judge carriers on different criteria.

        • http://www.facebook.com/jeffaye Jeff Ayers

          Do you think the average consumer understands what 4G really is? Every carrier advertises 4G speeds. My point is, by nickel and diming customers, a base is created that will instantly jump if a cheap and reliable competitor comes along. Which very well could be Google.

          • Immolate

            Jeff, it doesn’t matter if the average consumer understands 4G. What they understand is that Verizon has the best network, least call drops, etc. This is a reputation that is both powerful and nearly omnipresent among John Q. Public. Even people who vehemently disagree with it are aware of it.

            Agreed that there are plenty of Verizon customers who would gladly jump ship for another carrier with a great network and more user-friendly pricing plans. I’m one of them. I’ve been with Verizon since I’ve had a mobile phone, so I know what you’re saying.

          • http://twitter.com/reggie1225 Reginald Jefferson

            I feel you both are right. Verizon does seem to focus on a short term gain but that could be said for any wireless carrier. A short term gain is how they work, but at the same time they have a long term focus. This was proven with their dedication to build out a nationwide LTE network in conjunction with their vast CDMA network. That long term goal for network advancement and the eventual VoLTE option later on, gives them what they need to go back into feeding the short term success. Whether you hate ‘em or love ‘em, Verizon has managed to find a healthy balance between both long and short term goals that works for them.

          • PhillipCun

            Jeff, whether or not you want to believe it, Verizon is the BEST rated carrier in the US. The quality of their network is the best hands down. There is no argument.

            Sure they charge for this and that, but if they have the quality to back their product, most people will see the value of paying more for a quality service. If you don’t want to pay, go with TMO, the quality is not even close. You get what you pay for and unfortunately there isn’t enough competition to make carriers compete on pricing.

        • michael arazan

          I judge Verizon by lack of customer satisfaction, Price gouging data tiers and a slow 4g network that I only get 12 mbps in 2 states. And this unfortunately is the best around

          • michael arazan

            speedtest data speend4g from vzw for proof

    • http://www.facebook.com/cindy.leavell.3 Cindy Leavell

      I agree took the words right out of my mouth …

    • Trueblue711

      I wouldn’t say that Apple’s revenue stagnates from a user after a while. They’re locked into the App Store/iTunes ecosystem, so they’re likely to still be making money from that.

      • http://twitter.com/Belatukadro Justtyn Hutcheson

        While that is true, I believe that the time will son come when people realize that they don’t need the newest iDevice, because the one they have has access to everything they already want without spending hundreds of dollars. I can’t think of a single stand-out feature, or aggregation of features, that automatically makes the iPhone 5 or 4th-gen iPad a “must-have” upgrade. At the end of the day, Apple is a hardware vendor, not a software/services vendor. If they can’t continue to sell their products in the ridiculous volumes they have been at the rather obscene margins they have enjoyed, they will either have to follow the market and reduce their prices (not likely), or prove that they are beyond a doubt worth the extra cost (which is getting more difficult a prospect by the day). I’m not saying “Apple is finished, the end is nigh, trololol”, but they really need to make some waves soon if they want to fare better than they did in the Mac vs. PC battle with MS.

        • JoshGroff

          To be fair, most people upgrade when they’re able and sell the old to cover the cost of the new. Therefore the hundreds of dollars usually ends up being nothing, or they even make a few bucks.

          • http://twitter.com/havens1515 Randroid

            You obviously don’t know much about Apple fans. They see a new product, they buy it. It doesn’t matter if they have an upgrade available or not.

            “it has an ‘s’ at the end of the name, and my current one doesn’t! I must have it!”
            or
            “It’s 5, and mine’s 4 (or 4s) it MUST be a lot better, because the number is higher!”

          • JoshGroff

            Most Apple fans I know just get them on contract and use family upgrades and pass down the old one or sell it when their upgrade is up.

          • Immolate

            That’s what I do, which allows me to always have a brand new phone, and my kids to have better phones than they would otherwise have, but seldom does a phone get sold.

          • JoshGroff

            My friend’s family does that, but when the kids get a new phone, they sell the old one.

          • Fervid Vervet

            “they even make a few bucks”? How does that work? Do you mean I could buy an iphone 5, sell my iphone 3 for more than the price of the iphone 5, and make a net profit? Maybe if I could find a sufficiently gullible buyer…

          • granville

            Exactly what it means. I have sold two iPhones for about $25 more than I paid for the new version. Good resale and people are willing to pay a bit more to not have a contract constraint.

          • http://twitter.com/sleepyguy007 hans wee

            that is not including the subsidy dollars youare paying to AT&T or whatever which are “lost”. the reason subsidies even work, is that people like you really do think you are getting a phone for $200 when its in fact $600 and you are just paying for it in installments. then you believe you are “making” money since you dont even think the $400 you spent as part of your monthly bill exists

          • MicroNix

            Oh how you underestimate the Apple fans… :)

          • JoshGroff

            Assuming you always buy the latest model, a used 4 sells for around the price of a new 5. Granted the higher storage models will still lose a significant amount of money.

        • onDroid

          Since when are apple fans rational?

      • skip

        Apple makes very little profit on iTunes. They are a often considered a hardware company that uses software to enable h/w sales.

        • Hunter

          iTunes is a cash cow for Apple*

        • hyperbolee

          Try 30% off the top of everything buddy. As Hunter said, it’s a cash cow for Apple. Apple is atypical in that it provides both software and hardware.

        • MicroNix

          Steve Jobs was better than the preachers on TV. He’s positioned Apple to have cash coming in from all corners. Believe in the Apple religion and buy a piece of me! That hardware you buy that your iPhone plugs into? Apple gets a piece of that for the proprietary dongle attachment. iTunes music, books, apps…all cash. iTunes gift cards are at every teenager’s birthday party. Like hell they don’t make a big profit on iTunes! In Q2 of 2011 (yes, one quarter) it was reported that Apple had $1.4 BILLION in revenue from iTunes. I don’t know about you, but that’s a decent chunk of change to me.

    • http://twitter.com/ToysSamurai Toys Samurai

      There’s one problem, though. They created an animal (Samsung) that is so much bigger than everyone else (including Google itself.) At some point, if Samsung choose to get rid of any traces of Google’s services, it will significantly hurt Google’s revenue.

      • onDroid

        Google(GOOG) market capitalization $230B. Samsung(SMSN) $204B. Google is bigger

    • DroidDoesnt_2

      (Yawn)

      “Why Android’s Market Share Is No Threat To Apple’s iOS Platform”
      http://techpinions.com/why-and

      Read it fandroids….you might learn something :-)

      • gutbucketrider

        You seem to miss one critical point that the author, most likely chose, not to mention. That is that Apples’s iOS is another “thing” that is past it’s peak. People are seeing the bennefits of Android over Apple. I know, your response is going to be that the iPhone as a device has sold thousands (if not millions) more than any single Android, and your right about that. But that’s only because that is the ONLY device that runs iOS. If another company were allowed to make different device that could run iOS, do you think that would still be the case? Doubt it since that would actually be something that truly would be new for iOS, as opposed to the same iPhone with different letters and numbers thrown in for looks. Oh yeah… add another row of icons once in a while that’ll keep it fresh!

        Ultimately, you’re right; Google is going to make less on PC based ads. So is Bing, Yahoo, Facebook and every other company that advertises with the desktop user in mind. But do you really think Google isn’t making money through the advertising / promoting that is done in their mobile applications?

        • MicroNix

          The author also in talking about search peaking seems to solely reference PCs. I search just as much on a phone as a PC. That still counts as search. I’m not getting his differentiating of searching for something on a desktop vs mobile device. They both gather and return the same results. I can “Google” on my phone or my desktop just as easy. In fact, search on a mobile device should account for an acceleration in search because now more data is returned based on GPS location. But hey, if Apple isn’t returning the search from their servers, it must be irrelevant.

        • DroidDoesnt_2

          “This is that Apple’s iOS is another “thing” that is past it’s peak”

          Three Trends Underlying Apple’s iPhone Market Share Surge
          http://www.forbes.com/sites/darcytravlos/2012/11/28/three-trends-underlying-apples-iphone-market-share-surge/

          Wall Street analysts are expecting anywhere from 43 to 53 millioniphones to be sold in the December quarter: http://www.forbes.com/sites/chuckjones/2012/12/03/can-apple-sell-50-million-iphones-this-quarter/

          Growing marketshare, and expectations of 43-53 million iPhones sold, which would be a record for a quarter…you’re right….they’re waaaaay past their peak (o_O)

          “But do you really think Google isn’t making money through the advertising / promoting that is done in their mobile applications?”

          Mobile price per click ads are significantly less valuable that desktops ads, which led to Google posting disappointing earnings in Qtr 3: http://www.nytimes.com/2012/10/19/technology/google-shares-drop-after-earnings-disappoint.html?pagewanted=all&_r=0

          I would reevaluate which company you think has reached it’s “peak”….

          • Tim242

            GOOG is trading at $697.56, APPL $539.00

          • DroidDoesnt_2

            Apple makes more from the iPhone alone that Google’s entire operation…

          • Tim242

            Android is about more than Google. Samsung kicks apple’s a$$.

          • DroidDoesnt_2

            Apple qtr 3 smartphone profits: 71%
            Samsung qtr 3 smartphone profits: 37%
            http://www.statista.com/topics/840/smartphones/chart/528/apple-claims-71-percent-of-the-mobile-phone-industrys-profits/

            What an a$$ kicking….the sheer ignorance on this site is astounding

          • dangolds

            Tim – that’s a completely out of context comparison. You need to look at each company’s market cap, not just share price. Unless two companies have the same number of common shares outstanding, you can never determine the more valuable of the 2 companies by share price alone.

          • Tim242

            Market cap is just opinion. Guessing a company’s worth does not tell us anything. How much money their shareholders are making…that tells us something.

      • MicroNix

        Anyone who’s bio reads “His love affair with computing started with his purchase of the original Mac in 1985. ” is totally someone who is unbiased about his writing when it comes to Android vs Apple. /sarcasm

        The stuff you Apple fanboys come up with is unbelievable.

        • DroidDoesnt_2

          Why don’t you try refuting what he said instead of focusing on his bio….

    • MicroNix

      That’s not totally true. Apple has the iTunes CASH COW. So after they sell you an iDevice, they make even more off of your via iTunes. iTunes gift cards are used in nearly every kids’ birthday party. Apple makes 30% off all purchases in the iTunes app store. They make money off of every i-centric piece of hardware that uses their proprietary dongle. They have cash coming in from everywhere. It was well thought out and established before anyone else had a clue as to what was going on.

      I’m not an Apple fanboy, but when it comes to sucking in people’s cash, nobody does it better than Apple.

  • Gerret Walczak

    Fix fragmentation! Cherry and key lime pies do not a larger, better pie make!

    • 4n1m4L

      Hmm. I wonder what a key lime cupcake would taste like?

      • http://www.facebook.com/cush2push Geoff Wightman

        Like a jelly bean flavored ice cream sandwich

        • JoshGroff

          Why not an ice cream sandwich flavored jellybean?

          • Jeetu K

            because jelly bean can be flavours, whereas the former just is …

          • JoshGroff

            So then wouldn’t it have to be a gingerbread jellybean flavored ice cream sandwich or something? Just saying jelly bean flavored leaves it too open.

        • JasonIvers

          Awesome comment ^^^

    • Immolate

      How does it feel to be a foil for funnier people? Lol.

  • Geoff Johnson

    Badum Tish!

  • New_Guy

    smart man if I’ve ever seen one.