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Reports of collaboration between Google (Nasdaq: GOOG) and Apple (Nasdaq: AAPL) on various projects are rampant. There is an advertising partnership between the two tech giants underfoot, according to accounts. There's also talk of Google supplying video clips to Apple's forthcoming iTV device -- a wireless device that will let users watch videos stored on their PCs on their home TV. Apple plans to introduce iTV next year.
A video partnership between the two firms is an intriguing possibility, as Google Video already competes with iTunes to some extent.
The other Apple-Google link-up that is supposedly in the works -- the advertising partnership -- is more likely; in any case, it would be a more traditional partnership arrangement.
Google has inked several blockbuster deals, such as its agreement with MySpace.com and eBay (Nasdaq: EBAY). Apple's addition to this roster -- especially its highly trafficked iTunes Web site -- would represent a significant expansion for Google.
Both Google and Apple declined to comment for this article.
Broadening Horizons
If a video deal is in the works, there is speculation that it would be the first of many collaborative projects, Matt Booth, senior analyst with the Kelsey Group, told MacNewsWorld. "Assuming the reports are true, I think Google and Apple could work together to create a very good product in this area."
Whether the two firms plan on forging tighter links remains to be seen. Such speculation really took off last month, Booth said, when Google CEO Eric Schmidt joined Apple's board of directors -- a move that brings the total to eight.
"It is interesting that video appears to be the route they might take to launch a partnership," Booth observed. "It could have been anything, though -- whatever will be that first step will be a harbinger of additional projects. I don't know if that is the case, but that is how a lot of people are reading this."
That said, there are a number of possible synergies and areas of collaboration between Google and Apple. "Apple has many products that Google doesn't and vice versa," noted Booth. Top on the list of applications that Google doesn't have -- a list that keeps on getting shorter -- is an operating system.
Google and Apple also share a similar work culture that would facilitate any collaborative efforts.
Another school of thought behind the rumors is that
Apple and Google are moving closer together primarily
for defensive reasons. Microsoft (Nasdaq: MSFT) competes with both
companies -- Apple more directly but, in certain areas, Google as well.
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