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Analyst Watch: Why Google’s Obama gambit will fail

By Rob Enderle

November 11, 2011 — (Page 1 of 2)
As we approach the U.S. presidential election, with President Barack Obama clearly fighting for his job, there is an opportunity to do backroom deals that otherwise wouldn’t be done. Once such deal supposedly in the work is for the president to step in and overturn a likely finding in Apple’s favor on its International Trade Commission action to block HTC’s Android phones. These are high stakes, and while it appears Google thinks Obama will dance to its tune, I doubt this outcome. Let me walk you through it.

Eric Schmidt: Obama’s cheerleader
This subject came up in discussions speculating on why Eric Schmidt had become Obama’s biggest cheerleader on the new jobs bill that is currently stuck in Congress. Currently, he is the only technology CEO who is lobbying heavily for the bill, and while previously his support seemed tied to his desire to succeed Gary Locke as the next Commerce Secretary, that job has gone to someone else in the interim.

What brought this to light initially was an Aug. 24 column by Holman Jenkins Jr. in The Wall Street Journal titled “Obama and the Smartphone Wars.” Jenkins calls out Verizon as working behind the scenes to get Obama to overturn the likely finding that HTC was in violation of the Apple patents, and that the phones should be blocked. However, this column failed to address the likelihood that Google was operating behind the scenes to get this same result. This is why Schmidt appears to be Obama’s biggest jobs bill cheerleader at the moment: It appears to be a quid pro quo (you scratch my back, I scratch yours) effort.

But, if true, I don’t think this will work.

The Steve Jobs/Larry Ellison wild card
It is widely held that Apple founder Steve Jobs himself believed that Google stole his ideas for the iPhone while he was mentoring the Google founders and had Google’s CEO on Apple’s board. This was reported by Brad Stone and Miguel Helft in the Technology section of The New York Times in a piece titled “Apple’s Spat With Google Is Getting Personal.”

Related Search Term(s): Larry Ellison, Google, HTC, Steve Jobs, Barack Obama, Eric Schmidt

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