Comments contrast with analyst speculation

Despite recent reports that the relationship between Google and Apple has continued to deteriorate, the search giant's CEO Eric Schmidt claims ties have remained stable. Speaking during a conference call regarding quarterly earnings, the Google executive admitted that both companies have maintained a partnership in certain areas and competition in other arenas.

Schmidt said that he still "has a special spot for Apple in my heart," as he previously sat on the company's board of directors. He also described Apple as a "well run company."

A recent report suggests that Apple may not feel the same way, especially with the integration of Google's services on the iPhone and the rumored tablet device. An unnamed source claims Apple is in serious talks with Microsoft to make Bing the default utility for search and navigation functions. Separate sources claim the iPhone could be headed in the same direction.

The intensifying rivalry is partially credited to direct competition between the iPhone and Android devices. Although Google had remained separate from hardware distribution, the recent Nexus One launch deepened the company's role in selling the devices through its own online portal.

By Electronista Staff