Eric Schmidt Sounds Off on How Google is Beating Apple, and Other Topics
December 13, 2012 6:15 PM
comment(s) - last by
Former CEO defends Google using Caribbean tax shelter
While Q3 smartphone sales numbers are slightly deceptive as the much-anticipated Apple, Inc. (
was yet to launch, it's hard to deny that Google Inc. (
) brightly outpaced its rival
in unit sales
, with Google's Android taking 72 percent of the market, versus a mere 14 percent for Apple. In a new interview, former Google CEO
says that equated to 1.3 million Android smartphones activated a day, a key to Google outselling its rival 5-to-1.
I. Google v. Apple == Microsoft v. Apple Computer?
He compares his company's war against Apple to Microsoft Corp.'s (
) successful campaign against Apple Computer back in the 1980s and 1990s. He
, "This is a huge platform change; this is of the scale of 20 years ago -- Microsoft versus Apple. We’re winning that war pretty clearly now."
To Eric Schmidt, the sales triumph is vindication of Google's decision to give away Android to third party OEMs, versus Apple's policy of zealously possessive in-house efforts. Comments Mr. Schmidt, "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."
Former Google CEO Eric Schmidt claims Apple is repeating its own painful history.
[Image Source: The Sydney Morning Herald]
As for his company's and the general economy's outlook, he says he sees signs for optimism in the Chinese recovery. But he warns that
the so-called "fiscal cliff"
-- a series of automatic tax increases and spending cuts -- could kill a similar emerging recovery in the U.S.
He warns, "It will be tragic for the country if the sum of the government can’t resolve this. You can think of what’s going on as one set of special interests versus another, and a big fight and they all have to feel like they’ve been heard."
He sees Europe as another soft spot, saying that region will struggle to recover as southern nations like Spain, Italy, and Greece dangle on the edge of financial insolvency.
II. Schmidt on Gov't Regulation, Taxes
Mr. Schmidt defends his company's decision to shuffle $9.8B USD to a shell company in Bermuda
to escape $2B USD in taxes
from countries like the U.S., UK, France, and Australia.
He comments, "We pay lots of taxes; we pay them in the legally prescribed ways. I am very proud of the structure that we set up. We did it based on the incentives that the governments offered us to operate. It’s called capitalism. We are proudly capitalistic. I’m not confused about this."
Schmidt says nothing's wrong with Google using a tax shelter. [Image Source: Hook Worldwide]
On the topic of spectrum crunch, which AT&T, Inc. (
) and others
, Mr. Schmidt says it is a real problem, but that smart antennas may be able to help. He comments, "[True] all the modeling says the existing strategy will run out of cellular bandwidth in 2016 or 2017. [But] today you get dedicated bandwidth on your phone, and your phone doesn’t say, ’Ah ha! I can go over here or over up here.’ Smart radios can do that."
Google+ was also plugged by the former chief executive, which calls a "viable competitor to Facebook", thanks to its 100 million active users.
This article is over a month old, voting and posting comments is disabled
RE: Uncle Eric lost in the Hall of Mirrors
12/14/2012 5:31:08 PM
Exactly... Google plans are beyond Tony. They dont inform him nor do they care LOL. As if everything in business makes money the 1st few years anyhow. It's called investment. You put in now to get back later. Outselling the next closest competitor 2.5 to 1 in 2011 with an inferior product (Android 2.3x). Now in 2012 its 5 to 1 . Now that they have surpassed Apple with a better OS, the gap will grow, and grow. Especially with Apple stagnating on the innovation front. Google is firing on all pistons these days and Apple is just milking their previous achievements.
"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain
Eric Schmidt Suggests Peace With Apple is Coming, Dismisses Windows Phone
December 5, 2012, 12:30 PM
U.S. Science Programs Could Fall Behind Via Fiscal Cliff's Sequestration of Federal Funds
November 26, 2012, 10:12 PM
Inadvertently Leaked Earnings Report Leads to Shaky Trading Day for Google
October 18, 2012, 7:08 PM
Quick Note: Apple Sells 5 Million iPhone 5s During Launch Weekend
September 24, 2012, 9:08 AM
Apple Makes $9.5B USD in Britain, Pays Only 0.16% in Taxes; Google Also Targeted
April 10, 2012, 5:46 PM
AT&T Defeats Purpose of New Apple SIM, Locks iPad Air 2 SIMs to Its Network
October 24, 2014, 2:17 PM
Get Ready for "Microsoft Lumia" Smartphones in Next Few Months
October 24, 2014, 12:26 PM
Report: Samsung Galaxy S5 to Receive Android 5.0 Lollipop in December
October 24, 2014, 11:26 AM
Dreadful Fire Phone Sales Lead to $170M Writedown for Amazon
October 24, 2014, 8:55 AM
Xiaomi Moves Data Out of China to Woo EU, America, Escape Security Concerns
October 23, 2014, 5:11 PM
Android Wear’s First Major Update Brings GPS, Offline Music Support
October 23, 2014, 1:34 PM
Most Popular Articles
Chinese Government Declares Digital War Against America's Top Tech Firms
October 20, 2014, 12:07 PM
Samsung Announces Galaxy S5 Plus with Snapdragon 805 Processor, LTE-A
October 22, 2014, 3:40 PM
Windows 8.1 + Android "Sell Mini PC" w/ Bay Trail Creates New PC Form Factor
October 20, 2014, 5:07 PM
Apple Releases iOS 8.1; Adds Apple Pay Support, SMS Relay, Instant Hotspot
October 20, 2014, 1:00 PM
Apple's iPad Air 2 Features Triple-core A8X Processor, 2GB of RAM
October 21, 2014, 8:32 PM
Latest Blog Posts
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information