Apple Weary of Google’s Schmidt

The recent harmonious relationship between Google CEO Eric Schmidt and his membership on Apple’s board may be coming to a close in the near future, according to a BusinessWeek story.  

While both Apple and Google have declined to comment on the matter, it seems that the relationship between Google and Apple is transforming more into a head-to-head rivalry everyday. Schmidt does not participate in discussions regarding Apple's iPhone. The growing question is whether a board member who cannot weigh in on a product that accounts for a third of a company's revenue--as is the case with the iphone and Apple--is still a good choice for the company.

Corporate governance experts are voicing concern for the ethical problems resulting in the unusual partnership. Ron Gilson, a professor of business and law who teaches at Stanford and Columbia universities, tells BusinessWeek, “It becomes a judgment call about a director who's excluded from so much of what the board is doing and talking about."

Nell Minow, editor of The Corporate Library also weighed in, telling BW: “"It's like going to the doctor and asking him to check everything but your heart. In technology every part of the company has a bearing on every other part of the company."

As early as 2005, Google vocalized its intentions to enter the wireless market when Google acquired Android, a software maker focusing on building operating systems for wireless phones.