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Google CEO Schmidt Leaves Apple Board

Jerod Venema writes "Today, Google Chief Executive Eric Schmidt resigned from Apple's board of directors, citing conflicts of interest. Apple has released a statement that the company and Schmidt reached a decision to split ties as Google enters new markets that directly compete with Apple's iPhone and Mac operating systems. Schmidt had recused himself of portions of Apple's board meetings when conflicts of interest or anything Google-related arose. But Steve Jobs said Schmidt would have to leave much larger portions of the meetings after Google announced last month that it would enter the operating system sphere."

43 of 128 comments (clear)

  1. Google Voice Rejected by Blahgerton · · Score: 3, Interesting

    Surely this has nothing to do with Google Voice being rejected from the App Store.

    1. Re:Google Voice Rejected by Anonymous Coward · · Score: 5, Insightful

      No. It has more to do with a pending antitrust lawsuit by the DOJ.

    2. Re:Google Voice Rejected by Anonymous Coward · · Score: 3, Insightful

      Conflicts of interest made it inevitable that Schmidt would leave, but considering the timing, I wouldn't be surprised if GV being rejected was the impetus.

    3. Re:Google Voice Rejected by natehoy · · Score: 5, Informative

      Probably the latest in a long string of conflicts of interest. Schmidt couldn't really honestly get involved in the Google Voice discussions, obviously, since he represents the competition.

      As Google wants to eat more and more of Apple's lunch (and vice versa) having the same person on both Boards is almost guaranteed to be an automatic conflict. The timing of this is about right, since Google is getting into new lines of business that compete with almost everything Apple wants to do now.

      --
      "This post contains words, known to the State of California to cause thought. Wash brain thoroughly after reading."
    4. Re:Google Voice Rejected by 0100010001010011 · · Score: 5, Funny

      No, and don't call me Shirley.

    5. Re:Google Voice Rejected by lukas84 · · Score: 3, Insightful

      Apple apparently signed that contract with AT&T, so trashing them seems to be in order.

    6. Re:Google Voice Rejected by ukyoCE · · Score: 2, Informative

      When Google "took over" search they didn't have massively deep financial pockets or huge revenue. The other search providers (including Microsoft, of all people) very much DID have those things.

      All it requires to take over search is a better search algorithm. People can switch search providers trivially. Microsoft is using their OS and browser monopoly to try to force everyone onto their search provider every time they get a new PC or download a new browser version. Every internet providers set your homepage to a non-google search portal.

      The deck is stacked against Google. Nothing is forcing people to use Google search. People choose it because it's the best search experience out there.

      (I don't know much about the advertising end of things however, except I know that just like search there is a lot of other internet advertising out there, so I can't imagine you could call them a monopoly)

  2. only mp3 players left by robinsc · · Score: 5, Informative

    Well if you look
    Safari => chrome
    Mac os => google os
    iphone => android
    xserve =>google server farms

    probably the only thing he didn't have to recuse himself from would be mp3 players....

    --
    Linkedin http://in.linkedin.com/in/robinsaikatchatterjee
    1. Re:only mp3 players left by El_Muerte_TDS · · Score: 5, Funny

      turtle necks => t-shirts

    2. Re:only mp3 players left by larry+bagina · · Score: 2, Insightful

      how about the actual computers themselves?

      --
      Do you even lift?

      These aren't the 'roids you're looking for.

    3. Re:only mp3 players left by lorenlal · · Score: 5, Funny

      hippies => free spirits?

    4. Re:only mp3 players left by nxtw · · Score: 3, Interesting

      How can you compare xserver(a sold product) to googles server farms that are completely in house

      Using hosted Google services is an alternative to running similar applications on a local server. For example, there's no need to have a local email/calendaring server if you use Gmail and Google Calendar. In this example, it's really OS X Server that could be conflicting with Google's services.

      But the more relevant conflict is between Apple's MobileMe and Google's collection of (free) web apps.

    5. Re:only mp3 players left by AHuxley · · Score: 2, Funny

      hippies => CIA seed money?

      --
      Domestic spying is now "Benign Information Gathering"
    6. Re:only mp3 players left by RichardJenkins · · Score: 4, Funny

      I read somewhere that Apple also has a line in consumer PC hardware.

    7. Re:only mp3 players left by dkleinsc · · Score: 3, Funny

      free spirits => free beer => free speech?

      --
      I am officially gone from /. Long live http://www.soylentnews.com/
    8. Re:only mp3 players left by MightyYar · · Score: 5, Insightful

      I of course could be wrong, but I don't think Apple will sell anything cheaper than the Mini. The margins are simply too low for them to be interested in the netbook market, even if that market continues to grow. I think Apple has demonstrated consistently in the last decade that they value margins over market share.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    9. Re:only mp3 players left by MBGMorden · · Score: 4, Informative

      Since I don't rent music, iTunes adds no value.

      iTunes has never "rented" music in the resurrected Napster sense, and even in the "I call DRM renting" conniving sense virtually every piece of music sold by iTunes no no longer carries any DRM, so no matter which way you try to spin it these days your statement is simple FUD.

      --
      "People who think they know everything are very annoying to those of us who do."-Mark Twain
    10. Re:only mp3 players left by MightyYar · · Score: 3, Informative

      FYI, the two big music stores, iTunes and Amazon, don't use DRM of any kind anymore for their music.

      Video, on the other hand...

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    11. Re:only mp3 players left by MasterMnd · · Score: 2, Interesting

      probably the only thing he didn't have to recuse himself from would be mp3 players....

      Hmm, so does this mean that Google's about to announce a line of mp3 players? :)

    12. Re:only mp3 players left by dissy · · Score: 3, Informative

      How can you compare xserver(a sold product) to googles server farms that are completely in house

      It isn't too hard. One just needs to realize that googles server farms are not completely in house and are also a sold product.

      http://www.google.com/enterprise/search/gsa.html

      The Google Search Appliance (GSA) provides fast, relevant search for your website or intranet. An on-premise, easy-to-deploy solution, the GSA provides your organization with high relevancy right out of the box, can be customized to meet your specific needs, and scales easily as your content grows.

      Not exactly as sexy compared to an xserve, but it is a sold product none the less.

      Google Appliance Pict
      Xserve Pict

    13. Re:only mp3 players left by CharlyFoxtrot · · Score: 2, Funny

      I read somewhere that Apple also has a line in consumer PC hardware.

      Lies! They make luxury computing products for the discerning customer. ;-)

      --
      If all else fails, immortality can always be assured by spectacular error.
    14. Re:only mp3 players left by StikyPad · · Score: 2, Funny

      free spirits => free beer => free love.

      => free chlamydia

  3. mis-read title by Canazza · · Score: 2, Funny

    I thought he was just being dull at meetings...

    Given that he was leaving Apple bored

    --
    It pays to be obvious, especially if you have a reputation for being subtle.
  4. Re:Slooooow news day, huh? by Sockatume · · Score: 5, Funny

    Yeah, the internal politics of two of the biggest companies in personal computing in the wake of the Google Voice debacle are of absolutely no interest to anyone. What we need is wiring diagrams, dammit.

    --
    No kidding!!! What do you say at this point?
  5. Re:First thing on my mind by pha7boy · · Score: 3, Informative

    nevermind. it was 150mil stake of non-voting stock. So I guess no board of directors position.

    --
    -- All this knowledge is giving me a raging brainer.
  6. Arthur Levinson? by Faizdog · · Score: 4, Informative

    Genentech Inc. Chairman Arthur Levinson also serves as a director on both boards. The Feds are investigating that as well. What about him? The news story keep mentioning that Schmidt would recuse himself from discussions related to Google, what about Levinson? Did he recuse himself from both Google and Apple meetings when the other was being discussed?

    Just curious.

    --
    -"Those who fought today will die tommorow."-
    1. Re:Arthur Levinson? by rsmith-mac · · Score: 3, Informative

      The FTC/DOJ would be far more interested in Schmidt since he's not just on both boards, but he's an employee for one of the companies. The primary issue they're seeking to prevent is collusion, which is would usually be accomplished by company employees sitting on each others' boards. A common 3rd party board member on two similar companies is also an issue, but it's not nearly as pressing of an issue since they aren't an employee.

      Or to put this another way, they're handling one thing at a time.

  7. Re:next up, Apple switches to VirtualEarth for map by shadow349 · · Score: 2, Insightful

    Apple is already in bed with Microsoft and ActiveSync for iphone and Snow Leopard email connection to MS Exchange. Why not license mapping software as well?

    By that reason, Google should switch to VirtualEarth for maps. Google is already in bed with Microsoft and ActiveSync for Google Apps. Why not license mapping software as well?

  8. Finally by Anonymous Coward · · Score: 5, Funny

    I've always said that fucking Eric Schmidt is a fucking pussy. It's about time Apple realized that.

    -Anonymous CEO

    1. Re:Finally by Norsefire · · Score: 4, Funny

      Hi Steve!

    2. Re:Finally by csartanis · · Score: 3, Funny

      Ohh, but which Steve?

  9. Re:Or perhaps? by Nerdfest · · Score: 2, Insightful

    They're nowhere near going down. Even if they get fined for anti-trust, they'll get past it and do fine. If they're forced to open up their app store, it may even be good for them in the long run. At this point it probably is just a routine conflict of interest, but the timing adds some entertainment value.

  10. Re:Why? by Actually,+I+do+RTFA · · Score: 4, Funny

    Why is Jobs telling the Board what to do? Isn't it supposed to be the other way around?

    The Board tells Jobs the CEO what to do. Jobs, Chairman of the Board and major stockholder, tells the Board what to do.

    --
    Your ad here. Ask me how!
  11. Re:First thing on my mind by nine-times · · Score: 2, Informative

    Also, I don't think it exists anymore. I may be wrong, but I assume you're referring to the stock that Microsoft bought in the late 90s, which I believe they sold after a couple years. Too bad, too, because I'm guessing the stock is worth a lot more now, and Microsoft would have made a nice little profit if they'd kept their investment.

  12. Re:Sorry Eric by NatasRevol · · Score: 3, Informative

    http://www.google.com/corporate/tenthings.html

    Read #6.

    It's more than a towel, it's their ideals.

    --
    There are two types of people in the world: Those who crave closure
  13. May be good news for Android by Zebedeu · · Score: 3, Interesting

    I'm happy for these news because rumours have it that Google didn't implement some features such as multitouch in Android at Apple's request.

    Now that they aren't buddy-buddy anymore, maybe Google will say fuck it and implement those features anyway (much as Palm did with the Pré).

    Looking forward to that multitouch, and hopefully for those spring animations when a list reaches the end (in Android there isn't any visual feedback when you reach the end of a list except for the mini scrollbar on the right).

  14. Re:The real reason AT&T is terrified of Google by AudioInfecktion · · Score: 2, Informative

    Let me make some corrections to your observations. Google voice does not use VOIP at all, for anything. Making a call from a cell phone through google voice sends the call request via a data connection, to which googles servers initiate two calls. One to your cell phone, and another to your party. The google voice software on the cell phone intercepts the incoming call and answers it, and then waits for the other party to pick up... If you're webapp crippled on an iphone, the calls are still routed over normal calls using normal minutes between your phone and the GV servers. Here is what is lost for each party Apple looses control over some or all of your contacts as google voice will use your google contacts, and those stored in your phone. On android, they are one and the same. AT&T looses the ability to see who you are calling and whatever aggregate crap they generate from that to sell to whoever... Why this is valuable to them or how they even have legal authority to sell it is beyond me. They also loose 50% of the SMS revenue from the account as outbound SMS can be done over data.

  15. Re:Or perhaps? by je+ne+sais+quoi · · Score: 5, Interesting
    Just to emphasize here, according to the NYT, last month, in the middle of the worst recession in decades:

    Apple recorded its best nonholiday quarter ever when other electronics makers were hurting because of a downturn in consumer spending.

    They saw increasing revenue and profit in every single division of the company. Compare this to Microsoft, who last quarter saw:

    On Thursday, the world's largest software company reported its worst fiscal year since it initially sold stock to the public in 1986. Year-over-year revenue and full-year sales of Microsoft's flagship Windows software dropped for the first time.

    Microsoft saw billion dollar reductions in revenue in both the windows (Client) and office (Business) divisions, and it's xbox (entertainment) and search (on-line) divisions were actually in the red and are losing the company money.

    Apple is not a "ship going down", this statement is demonstrably false, people are even calling it recession proof. You could say that about Microsoft however and not be contradicted by facts.

    --
    Gentlemen! You can't fight in here, this is the war room!
  16. This is all about Andriod by indymike · · Score: 2, Interesting

    This is all about Android, which is poised to knock off the iPhone this fall as over 18 new devices hit the market (from Motorola, Samsung, LG and HTC). Android is the game changer, and both Google and Apple know it.

    --
    -- Mike
    1. Re:This is all about Andriod by kklein · · Score: 2, Insightful

      Android is the game changer, and both Google and Apple know it.

      Yes, 18 new devices; 18 ways for them to suck differently. You don't really get why Apple products do well, do you? You're one of those people who think it's the aesthetics, right?

  17. Yes, you're being a little paranoid by DJRumpy · · Score: 2, Informative
  18. Well, you know what they say... by inode_buddha · · Score: 4, Funny

    "Schmidt Happens"

    --
    C|N>K
  19. Re:Why? by Man+On+Pink+Corner · · Score: 4, Funny

    Jobs has altered the corporate charter. The Board should pray he does not alter it further.