Is Google treading on Apple’s domain?

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In the past, the relationship between Apple and Google had been very pleasant. For years, the two companies focused on different parts of the market and did not interfere with each other’s territory. But recently, Google has been exploring various new horizons to expand its business, but by doing this, the search giant has intercepted the territory of Apple.

Recent developments

According to various analysts, after the success of iPhone and Apple apps store, Google and also Apple have plans to move deeper into each other’s business. It seems that Apple wanted to get into advertising, while Google sought a music service, Smartphone business and netbooks.

Rivalry heats-up: The tiff between the two giant can be seen in the recent developments; Apple rejected the Google Voice application for the iPhone and on the contrary, Google is launching its own branded Smartphone and netbook in 2010. The two companies also shared close ties at its highest level, but Google CEO, Mr. Eric Schmidt resigned from Apple’s board in August.

Browser-OS war: Google has developed an operating system called Chrome operating system for light PCs like netbooks that would compete with Apple’s Macintosh machines. Further, its Chrome web browser competes with Apple’s Safari.

Acquisition spree: In November, Google had acquired a mobile-advertising company AdMob Inc for $750 million. Sources said Apple had also pursued a deal with the start-up company. It seems that Apple will be benefitted with the AdMob’s acquisition as the latter could provide profits via advertising in some of the apps in its App Store. At present, about 25,000 apps are free to consumers and supported by advertising.

Recently, Google has also acquired online-music company LaLa Media Inc before Apple could take its chances.

Mobile front: Apple’s iPhone is already a hit in the market and sources said that the company will launch its fourth generation “iPhone 4” in June, 2010 with 5 megapixel camera. But, Google has also been planning for an all-out assault on the mobile-phone market through its own branded handset, codenamed “Nexus One.” It is assumed that the device will be one of the most advanced Smartphones present in the market with Android operating system, and will directly challenge Apple’s iPhone supremacy.

It is reported that the search giant is also working with various mobile phone makers to incorporate Google apps and developing handsets with more prominent Google branding.
 
Digital music: Apple’s iTunes has been dominant in the field of digital music, while Google has started in the territory. Google has recently introduced a music search and listening service with Lala as one of several partners. Further, Google had shown the integration of its music service with Chrome OS, its new Web-based operating system and provide an alternative to iTunes.
 
Discussion

With $22 billion cash in hand, Google is in hiring spree. It bought display-ad company Teracent, Internet-phone provider Gizmo5 and AppJet, online collaboration software manufacturer.
However, Apple, which has $34 billion in cash, has done fewer acquisitions and is searching for iPhone-related technologies. However, due to rumor of Apple Tablet in January, its shares surge and almost reached market parity with Google and Wal-Mart with market value to $188 billion.

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