Google Inc. and Apple Inc. have evolved from Silicon Valley friends to foes during the past year as they increasingly lock horns in the same markets, including mobile phones, computer software, music and advertising.
The mounting competition prompted Google CEO Eric Schmidt to step down from Apple's board last August.
The tensions escalated even more when Google began selling a mobile phone, the Nexus One, to challenge Apple's iPhone even though that device showcases Google's search engine and other services. On the same day that the Nexus One debuted, Apple announced it was buying Quattro Wireless so it could challenge Google in the mobile ad market.
Schmidt touched upon the current state of Google's relationship with Apple during a Thursday conference call with analysts.
QUESTION: Any color you can add on your partnerships/company dynamics (between) Google and Apple?
SCHMIDT: As a former board member, I have a special spot for Apple in my heart. I will tell you that Apple is a very well-run company and they have a lot of very good stuff coming.
We have a couple of very good partnerships with them and we also compete with them in a couple areas. My guess is that's (going to be) a pretty stable situation for a while.
