thechromesource – Google Chrome and Chrome OS News and Forum

I don’t think that many people expected a battle pitting Google versus Apple a year ago, much less a rivalry that is based on hardware.

In that span of time, many things have changed. No longer is Eric Schmidt on Apple’s board and it is anyone’s guess how much longer Google branded services will be promoted on Apple devices. Acquisitions have been heating up between the two companies, with both of them sporting no debt and having large cash reserves.

This past week has seen Google purchase Agnilux, which is a start-up semiconductor company that was founded by some people who once worked for P.A. Semi, bought by Apple in 2008 and reportedly featuring some of the technology that is inside the iPad. You following this? I know, perplexing. There seems to be a rush for semiconductors in the hardware market to push the market past what we’ve been using for years: netbooks and laptops.

Case in point: the rumor that is going around whereby Apple plans on purchasing ultra-mobile chip developer ARM. While I’m sure Apple covets ARM’s technology (since it is used in the iPad, iPhone and iPod touch) it doesn’t sound as if ARM wants to become a part of Apple. That’s probably because even though they are ARM’s biggest customer, ARM would likely lose most of their other competing customers such as Samsung, Qualcomm and Google (now via Android and soon Chrome OS).

“Nobody has to buy the company”, is the quote from ARM CEO Warren East when asked about Apple buyout rumors. That may be true, but when you see that Chromium’s newest releases are showing that the hardware is being steered toward using ARM solutions for processing, this probably makes Apple a bit nervous because they already have hold of a nice niche with great margins.

It makes sense in that light why when they recently purchased chip designer Intrinsity, they decided to keep it quiet. Also kept silent is the fact that Intrinsity likely had more to do with Apple’s A4 processor than anyone inside the company wants to be known.

While we’re on the subject of hardware, expect to see a different platform model as Chrome OS progresses, one that blends Apple’s model with an open source software environment. In order to offer the best user experience the hardware requirements for Chrome OS are going to be dictated by Google. At the same time, they will allow developers to continue to work on Chromium in an effort to make it the best cloud platform out there.

Expect to also see an integrated store for apps that cost money with Chrome OS, with Google acting as the intermediary for billing and marketing of the marketplace. All other apps will be readily available on the web if they are free, allowing developers to focus on their craft and tipping their hats to Google for paid offerings and the platform that allows interoperability with other developers’ apps.

It’s a somewhat reverse model from Microsoft, which has in the past allowed for hardware manufacturers to develop for their platform, but keeping the operating system and tools to create applications under lock and key. Many times I have heard from developers how the methods by which Microsoft dictates its architecture causes problems in terms of software development; however these gripes seem to be declining.

Hopefully, Google will take caution to make sure that they do not end up with the same problems, but in opposite order. Hardware manufacturers may become exasperated by strong technical requirements needed for Chrome OS hardware, causing material costs to rise and thus margins to be much lower than is accustomed. Of course, one can also put into account the fact that the licensing costs that are associated with Microsoft’s operating systems will not come into play since Chrome OS is free.

At the same time, a hodgepodge of applications that run on Chrome OS are going to need to have a strong, unifying Google-like theme that will save the operating system from looking like a MySpace-oriented user interface. Apple has done this successfully, but of course at the expense of allowing an open environment and allowing some web functionality (Flash) to work properly on their devices.

Bottom line: Google bought a secretive hardware company, which has to mean something worthwhile for either the cloud or for mobile devices. Clearly this is a strategic move to compete with Apple, albeit in a different way than the iDevices. We shall soon see which way that is.