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Now the question most industry watchers are asking is if Google had been working on an Android powered phone because they did wait until September 2008 a year after the iPhone was launched to introduce the G1 phone? In addition, the facts suggest that it was because of tensions over Google's entry into the phone business that may contributed to the exit of Mr. Eric Schmidt from the Apple board. Analysts believe that Google may have been working on an android powered phone before the iPhone was introduced but the iPhone seemed to have given them better insights as to how to perfect their own smartphone. This is especially true given the resemblance of the Nexus one to the iPhone. A further confirmation of Google's motive for launching the Android phones could be gleaned from comments made at the Google I / O conference held last May. At the event, Google explained that they introduced Android to consumers so that Apple would not acquire significant influence that could become draconian. In addition, the facts seem to suggest that Google went into the phone business following the realization that future of computing would be in portable devices like phones and tablet computers.
As a result, they went into the phone business with the goal of dominating web on that platform just like they had done on the desktop. This notice is supported by Eric Schmidt, CEO of Google in published comments he made in an interview with the UK Guardian spaper on June 25th 2010. In that interview Mr. Schmidt suggested that he wants Android to be the Windows of Mobile. Also in that same interview Mr. Schmidt made critical comments about Microsoft Windows and said: "You have to ask how on earth Windows Phone – which will have a paid-for license – is ever going to attract any handset makers, but it must be loudest for developers considering whether the shrinking , forwards-incompatible pool of Windows Mobile phones is really worth bothering with ".
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In contrast, Apple appears to have gone into the phone business as a re-positioning strategy and with a goal to make huge revenue from the sale of the smart phone hardware itself. Also with the advent of the smart phones, Apple realized that there was a huge potential in the area of mobile Advertising. This was why they bought to acquire Admob.
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While Apple was negotiating to buy Admob which is a mobile advertising company Google quickly replaced in and accepted Admob. As a result Apple went ahead to acquire Quatro wireless which is Admob's biggest competitor. In reaction to Google's acquisition of Admob Apple has re-written the rules of its mobile Advertising platform called the iAd there before shutting out Admob, which had been accepted by Google. As the smart phone war rages on Bloomberg, s reports that Apple has sold more than 50 million iPhones since its introduction. According to Apple CEO, Steve Jobs the latest version, iPhone 4 has sold more than 3 million units since its June 24, 2010 debut.
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Analysts believe iPhones account for nearly 35 percent of Apples $ 42. 9 billion revenue. Also, the iPhone has over 200, 000 applications with over 5 billion downloads till date. The rapid growth of applications on Apple's ecosystem could be traced to the initial incentive the company offered to developers.
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