Google’s Schmidt Says Apple Rivalry Benefits Consumers

Google Inc. Chairman Eric Schmidt said growing competition with Apple Inc. in mobile computing has been good for consumers by pushing smartphone prices lower.

Google’s Android software, which is the most popular operating system on smartphones, is Apple’s main rival in wireless devices and mapping services. In an interview today on Bloomberg Television, Schmidt said that competition has led to reduced prices, including new handsets in China and India for less than $100.

“This brutal competition between Apple and Google over Android and iOS has enormous benefits for consumers worldwide,” said Schmidt, who was touting the book “How Google Works,” which he co-authored. “It’s always good to have more competitors, but trust me -- between Apple and Google you’re seeing enormous, enormous racing.”

Apple and Mountain View, California-based Google -- along with its partners -- are locked in a global fight for sales and profit in the smartphone market as consumers around the world spend more time on mobile devices that provide games, entertainment and Internet services. Last year, sales of Android-based phones made by different manufacturers accounted for almost 80 percent of the global market, while Apple’s iOS made up 16 percent of unit shipments, according to Gartner Inc. Apple started selling two new versions of its iPhone last week, and on Sept. 22 the company said it sold a record of more than 10 million of the devices in their debut weekend.

Before it's here, it's on the Bloomberg Terminal.