Google CEO Touts iPhone Benefits

Even though Google's Android is a competitor to the iPhone Google has been one of the biggest beneficiaries of the visibility and success of Apple's device. Fortune captured some of Schmidt's remarks about mobile and the iPhone in particular during his one-on-one interview at the Fortune "Brainstorm Tech" conference in Half Moon Bay, California:

“It shows you the power of a device that is a step forward,” said Schmidt in an interview Wednesday at Brainstorm Tech with Fortune senior writer David Kirkpatrick. “The iPhone has a fully functional browser. We can show desktop ads, not mobile ads. That’s a huge change from our perspective.”

Google would prefer to have mobile and the Internet be more unified than separate for advertising purposes. But there are challenges with "full HTML" browsers: desktop ads are less visible and therefore much less effective on the smaller screen.

As we wrote earlier this year:

Even though Android was in the works before the launch of the iPhone there’s a way in which they’re “connected at the hip” or Android is the direct beneficiary of the iPhone in a certain way. There might not have been as much carrier and OEM interest in Android had their not been an iPhone to show the benefits of a better mobile user experience.

It's almost certain, because of the ways that it can be configured, that the Android phones and experiences that show up in version 1.0 will not be as "good" as the iPhone. But if they become as widely available as Google hopes they'll help push the mobile Internet forward on a larger scale. In many ways Google hopes to become Honda (less flash, more unit sales) to Apple's Mercedes (more prestige, fewer sales).