Eric Schmidt Finds it 'Curious' That Apple Only Sues Android OEMs instead of Google

[dgstorm]

In a recent interview with the Wall Street Journal, Google's Chairman, Eric Schmidt had several interesting things to say about the state of the tech world. He finds it "curious" that Apple has chosen to only sue Android OEMs instead of challenging Google directly, perhaps implying that Apple only picks on companies that do not have the financial power and legal clout to fight back. He implied that this was bad for the industry because it's bad for innovation. He shared the following example when asked about the "the endgame of all of this patent litigation,"

It'll continue for a while. Google is doing fine. Apple is doing fine. Let me tell you the loser here.

There's a young [Android co-founder] Andy Rubin trying to form a new version of Danger [the smartphone company Mr. Rubin co-founded before Android]. How is he or she going to be able to get the patent coverage necessary to offer version one of their product? That's the real consequence of this.

He also was disappointed that Apple chose to ditch Google Maps, and didn't understand why they took YouTube off their homescreens.

In terms of industry competition, Mr. Schmidt offered up his opinion that there are really only the "Gang of Four" big players in consumer technology anymore. They are Google, Apple, Amazon Inc. and Facebook Inc., which conspicuously leaves Microsoft out of the picture. In fact, when talking about Microsoft's new Windows 8 and Windows Phone 8 Platform, he said, "I have not used it, but I think that Microsoft has not emerged as a trendsetter in this new model yet."

That's a friendly way of saying that Microsoft's day in the sun might be over. What do you think? Does he have things pegged pretty well?

Source: WSJ via Engadget

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[MA83]

I think he's wrong about Microsoft, but pretty solid on the other comments. I see MS taking further market share away from Apple. I don't see them making much of a dent in Google though. W8 is a solid mobile operating system that will come into it's own.

[AndroidIsTheTruth]

I think he's wrong about Microsoft, but pretty solid on the other comments. I see MS taking further market share away from Apple. I don't see them making much of a dent in Google though. W8 is a solid mobile operating system that will come into it's own.

Agree and disagree. There will be Android migration of at the least using both. I have the Lumia 920 very solid phone and very reliable mite than my Nexus 7 upgrade that has sluggish since the latest firmware update. IMO MS will be Android competition in two years. But yes WP8 is solid but has a lot of catching to do still. It's where Froyo was for Android I M O.

[J515OP]

I don't think it is a snub that MS's days in the sun might be over but let's face it they are not a social network, design trend setting, digital innovation presence. They simply make the OS that the vast majority of computers in the world run on and the office suite that is used to get stuff done on that OS. It is a completely different kind of company than the others.

Google - Search provider that makes money from ads. Has built an empire of useful features (Gmail, Google+, Chrome, Android, Play Store, YoutTube, etc.) to support this. Is a digital presence and trend setter in applications offered to users. (Car analogy: BMW, Mercedes, Lexus, Acura, etc.)

Apple - High end product manufacturer, software and hardware design innovator and style and direction trend setter. Vertically integrated with direct sales of hardware and software to consumers and one of the most successful digital market to date. (Car analogy: Lamborghini, Ferrari, Bugatti)

Amazon - All consumer products, digital and physical, specializing in ebooks and moving into mutli-media. Direct sales, excellent reviews, low prices. (Car analogy: Volkswagen, Audi, Mini Cooper)

Face Book - Social connector making money through ads and what it knows about your connections. Ties everything together, circulates and reinforces trends is the place to be where everybody else also is and the easiest way to connect and share. (Car analogy: Toyota, Honda, Ford, GM)

Microsoft - Software company that makes its money selling software to business and PC manufacturers. Makes limited direct hardware (its most successful venture coming in the form of gaming) and software sales to consumers. Has limited search, social and online presence which does not generate much (comparatively) ad revenue or trend direction. Web search (and therefore ad revenue) very limited reach despite much effort, web mail that has been supplanted by other services, multiple failed digital markets and music services. (Car analogy: 18 wheel big rig)


The first 3 all directly interact with and draw consumers into their own ecosystem, with Google and Face Book each being able to reach consumers regardless of the platform the are on. Each has direct influence on their users and generates revenues directly back from those same users.

MS has its place but it isn't really a consumer facing company. Even though it is universally in a consumer's life it makes its money on the back end not directly from consumers (very little of their revenue comes from consumer direct software sales). Windows 8, Windows RT, Windows Phone are all a change of direction trying to reach consumers by tying them into a MS ecosystem. For the first time all the aspects of their OS platform will direct a consumer back to MS's app store and secondary services (hotmail, skydrive, xbox, etc.) making them consumer facing with a product to sell directly (apps) and services which generate ad and data revenue.

The MS of the past and present isn't really comparable to the others. It has been trying very hard for a very long time to expanded beyond indirect consumer software sales (MSN, Bing, Hotmail, Office Live, Zune, Zune Pass, etc.) and with with its new cross platform ecosystem, the ecosystem model being pioneered and developed more successfully by the other three companies, looks to finally be in a position to join the big consumer facing companies mentioned. The MS of the future looks to be a growing into the face of the sun not fading from it.

At the same time PC manufacturers and hardware manufactures in general are slipping as front facing consumer companies. No longer are people going out and buying a Dell or Gateway or Asus based on which hardware manufacturer competed the most for their attention in a popularity contest with the expectation they all shipped with Windows, but instead they are choosing to get an Android, iOS or MS device. The choosing of the hardware is now secondary to the ecosystem choice.

Edit: Amazon was included and has been appropriately added.

[MA83]

The choosing of the hardware is now secondary to the ecosystem choice.

That's a very interesting statement. I don't know if it's entirely secondary for me. Hardware is still a huge influence for me, but it certainly isn't as much as it used to be. And the usability of the ecosystem is a much bigger influencer than it used to be. Having now owned an Apple and a Android device and having played around with a W8 device (wanting to own), my personal preference comes down to W8>And>Apl. However, part of that influence is the ability to have a tablet's hardware that is x86/64 infrastructure compatible. Everything I've done with my droid is centered around making it compatible/functional with MS programs. So, I'm looking forward to the new ivy bridge W8 pro tabs. Although I have enjoyed my Android tablet and have liked my Android phones better than my iPhone, I'm looking forward to switching to a cross platform MS experience.

[vampirefo.]

I don't see MS as a player in the tablet, smart phone market. Look at it this way, you buy a tablet using android 2.3 you could upgrade it to 3,4,4.2 cm7, cm9,cm10,custom roms and recoveries. With windows 8 you get windows 8. The tablet will always remain windows 8.

[J515OP]

Hardware does sound secondary even in your case All too often ecosystem is meant to mean app store. I am using ecosystem in the broader sense which the app store is only one part of.

The way I see the hardware driving the primary choice is from a little different perspective. If you need a certain performance spec (video cards, RAM, HD space, etc.) then your ecosystem may be a secondary choice. Statistically a hardware decision will default you into the MS ecosystem because of the strong wintel heritage though it could be Linux or OSX or even DOS. In the case of hardware choices, particularly in the pre-post pc/pc+ era (or prior to whatever era we are in now) most people decided if they wanted to buy a Dell or Gateway or HP or a Compaq based on specs and the option of running Linux instead of Windows, or the "ecosystem," was secondary. (Though choosing Apple back in the day was an ecosystem choice over hardware.)

However, if you can accomplish your tasks through apps or workarounds, like you have been doing with Android, then the ecosystem was still the first choice you had to make. You choose to use Android or iOS and then try to make it suit your needs. Which actual hardware you are using is irrelevant, it could be an iPad 2 or 4 or Samsung or Asus but first you have to decide which ecosystem you are using and then you decide which device to use under that ecosystem.

This is a huge shift in thinking and why the PC makers once dominated the conversation. Now iOS, Android and Windows dominate the conversation and most people don't think about which hardware to choose until after they have already decided wich ecosystem to look for devices under.

[J515OP]

I don't see MS as a player in the tablet, smart phone market. Look at it this way, you buy a tablet using android 2.3 you could upgrade it to 3,4,4.2 cm7, cm9,cm10,custom roms and recoveries. With windows 8 you get windows 8. The tablet will always remain windows 8.

This hasn't stopped Apple. Beside MS has committed to annual updates (Windows Next: Just call it 'Blue'? | ZDNet Windows Blue is Microsoft's future low-cost OS with yearly updates | The Verge). So while it may be "just" iOS6 or Windows 8 both are being regularly updated.

MS has had plenty of failure to get traction in becoming more that a software maker. It remains to be seen if the shift in Windows will work in making them an ecosystem player but the landscape has changed and they realized they needed to do something.

JP

[vampirefo.]

Apple survives cause they were first, but they loose market share everyday because they don't change, their product is the same when you buy it as it is when you get rid of it. MS just brings the same, 1st 6 months windows will sell top out and die in a year.

[J515OP]

Apple survives cause they were first, but they loose market share everyday because they don't change, their product is the same when you buy it as it is when you get rid of it. MS just brings the same, 1st 6 months windows will sell top out and die in a year.

Well you and most people who care to post on this board are in the minority regarding freedom of choice and options. I can't even begin to tell you how many Apple people won't even consider change (unless directed by the mothership) let alone all the MS people who are supposedly freaking out that the "start" button is gone