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By Jeremy Glaser | 08-03-2009 12:09 PM

Are Apple and Google Preparing for Battle?

Apple stock analyst Rick Hanna sees Google CEO Eric Schmidt's resignation from Apple's board as recognition of the firms' growing competition in the mobile phone and software space but does not see Google as a threat to Apple's long-term competitive advantage.

Securities mentioned in this video
GOOGL Alphabet Inc
AAPL Apple Inc

Jeremy Glaser: I'm Jeremy Glaser with Morningstar. This morning, Eric Schmidt, CEO of Google, resigned from Apple's Board of Directors. Here to discuss the impact of this announcement and any potential competition between Google and Apple in the future is our analyst Rick Hanna. Thanks for joining me, Rick.

Rick Hanna: Thank you, Jeremy.

Glaser: So what impact do you think this has on Apple, if any?

Hanna: Well, I think it's more symbolic than anything else. What I think it really is is how quickly technology changes. Eric Schmidt has been on Apple's board for almost three years now. Three years ago, Apple wasn't in the phone business. Google was primarily focused on search and advertising related to search, and how, in three short years, they're intersecting in phones, and now increasingly in software as well. I think that because of that increasing overlap, they've mutually come to a decision that it probably would be in their best interests that he would leave the board.

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