In 2006, Steve Jobs made a seemingly simple move: he invited Google’s CEO Eric Schmidt to join Apple’s board of directors. At the time, it appeared to be a strategic partnership focused on collaboration and innovation. Google’s services—such as search and maps—would be integrated into Apple’s groundbreaking new device, the iPhone.
But by 2009, everything had changed. Jobs was threatening to spend $40 billion to destroy Schmidt, and what started as a partnership evolved into one of the most expensive corporate feuds in history. This is the story of how one betrayal tore apart a friendship, reshaped the tech world, and led to a rivalry that still reverberates today.
The Early Days: Partnership and Promise
In 2006, Apple and Google seemed like the perfect match. Steve Jobs invited Eric Schmidt to sit on Apple’s board, and the two CEOs appeared to be united in their shared vision for the future of technology. Apple had just introduced the iPhone, and Google would provide key services for the device—such as YouTube, Maps, and Search—integrating them into the iPhone’s sleek new interface.
On stage at MacWorld, Jobs and Schmidt even appeared like best friends. The iPhone was poised to revolutionize mobile technology, and the two tech giants were working together to make it happen. However, beneath the surface, there was something more complex unfolding—a battle for control of the mobile future.
Android’s Secret Emergence
While Apple and Google were publicly collaborating, Schmidt and his team at Google were quietly working on their own mobile project. In 2005, Google acquired a small startup called Android, with the initial pitch being to develop a mobile operating system to compete with BlackBerry.
But as the iPhone was unveiled and its capabilities became clear, Google shifted its focus. Android’s development took a dramatic turn to resemble iOS in many ways. Touch interfaces, app stores, mobile browsers—Android suddenly looked very much like Apple’s iOS.
This shift did not go unnoticed by Steve Jobs. He was furious.
The Betrayal: Google Turns Against Apple
Jobs felt deeply betrayed. He had trusted Schmidt, bringing him in on Apple’s inner workings, including discussions about the iPhone. Schmidt had attended meetings where Apple’s groundbreaking mobile project was being developed. Jobs had entrusted him with Apple’s “crown jewels,” only for Schmidt’s company to use that insider knowledge to create a competing product.
But the situation got even worse. Google wasn’t just building a competitor to the iPhone; they were giving Android away for free to phone manufacturers. Jobs knew this would lead to dozens of cheaper Android-powered phones flooding the market, threatening Apple’s premium iPhone business.
By 2009, tensions between Jobs and Schmidt reached a boiling point. Schmidt began recusing himself from iPhone-related discussions at Apple board meetings, and eventually, he resigned from Apple’s board altogether.
Jobs’ Fury: “I Will Destroy Android”
Steve Jobs’ response was nothing short of nuclear. In his biography, he famously declared, “I will spend every penny of Apple’s $40 billion in cash to destroy Android. I’m going to destroy Android because it’s a stolen product.”
Jobs viewed Google’s move as nothing less than a personal betrayal, and he was ready to take drastic measures to eliminate Android as a threat.
The Rise of Android: Google’s Ace in the Hole
Despite Jobs’ anger and threats, Android’s “open” strategy proved to be remarkably effective. By 2011, Android had overtaken iOS in global market share. Manufacturers like Samsung were shipping millions of Android phones, and the iPhone was facing fierce competition from an ecosystem that was growing rapidly.
For Jobs, this was his worst nightmare. He had envisioned a world where Apple’s tightly controlled ecosystem ruled mobile devices, but instead, Google’s open-source approach was winning over manufacturers and consumers alike. Android’s rapid adoption made it clear: Google’s strategy was working.
The War Escalates: Lawsuits and Legal Battles
As the market share shifted, the rivalry between Apple and Google turned into an all-out legal war. Apple sued Samsung for $2.5 billion, accusing the company of copying features from the iPhone. The legal battles between Apple and its Android partners would eventually cost both companies hundreds of millions of dollars in litigation fees.
But the legal war wasn’t just about patent disputes—it was about two competing visions for technology: Apple’s tightly controlled, premium experience versus Google’s open, accessible platform. Jobs’ fury reached its peak when he declared to his biographer, “I’m willing to go thermonuclear war on this.”
The Unlikely Peace: Google Pays Apple Billions
As the years passed, the battle between Apple and Google didn’t just remain about Android vs. iOS. By 2021, something unexpected happened: Google was paying Apple an estimated $15 billion annually to remain the default search engine on iOS.
In an ironic twist, the company Jobs had vowed to destroy was now paying Apple billions every year for this crucial role. Both sides had come to a profound realization—they needed each other.
Apple’s iOS had a dominant position in mobile profits, while Android controlled the majority of the market share. Google relied on Apple’s devices to maintain its search dominance, and Apple relied on Google’s services to keep iOS competitive. Despite their fierce competition, both companies had become intertwined in a way that made collaboration inevitable.
The State of the Rivalry Today
Today, Apple and Google maintain a delicate and uneasy peace. While they continue to compete fiercely in the smartphone market, they also depend on each other in ways they never could have imagined in 2006. The numbers tell the story:
- Android: 70% global market share
- iOS: 30% market share but 80% of mobile profits
- Google’s payments to Apple: $15 billion/year
- Legal costs: Billions spent on patent wars
In the years since Jobs and Schmidt’s initial collaboration, the two companies have both dominated the mobile computing world. iOS and Android now control a combined 99% of the smartphone market. What began as a partnership between two tech titans has evolved into a fierce rivalry that still shapes the tech landscape today.
The Lesson: In Tech, Keep Your Friends Close
The story of Steve Jobs and Eric Schmidt’s relationship is a cautionary tale for the tech industry. It shows how quickly alliances can turn into bitter feuds when the stakes are high enough. What began as a friendship, with both companies working together to shape the future of mobile computing, became the tech industry’s greatest rivalry.
Jobs’ relationship with Schmidt underscores an important lesson: In the world of technology, today’s partner could very well be tomorrow’s greatest threat. And in a market driven by innovation, the lines between collaboration and competition are often thin, if not invisible.
As Apple and Google continue to shape the future of technology, one thing remains clear: in the tech world, it’s not just about the product. It’s about the power struggle that drives it all. Keep your friends close… and your potential competitors off your board.
