Bloomberg has a profile up on Larry Page's Google 3.0 and it highlights how Google and Apple may have gone from sweethearts who shared the original iPhone introductory stage to bitter rivals in the smartphone space:
[Google VP Vic] Gundotra has also sparred with Apple behind the scenes. As Android became a threat to Apple in 2008, Apple began resisting Google's claim to valuable location data gathered whenever an iPhone owner used Google Maps. His negotiations with Apple marketing chief Phil Schiller grew so heated that Schmidt and Steve Jobs had to intervene to settle the matter, according to two people familiar with the incident. (Apple announced earlier this year that it had developed its own location-monitoring system. Gundotra and Schiller both declined to comment on the incident.)
9to5Mac's Seth Weintraub adds:
The other turning point was the release of the G1 which “looked nothing like the prototypes that Steve Jobs and Scott Forstall were shown by Google’s leadership”.
Those Android prototypes looked like and were targeted at front-facing QWERTY BlackBerry and WindowsMobile phones (see the picture at the top of the post) and shown during a time when Google's then-CEO, Eric Schmidt sat on Apple's board of directors. The G1 looked and worked much more like the full, capacitive screen iPhone.
Google is now on its way to being the most popular OS in mobile and have just begun previewing their latest, tablet and large-screen release. (See Android Central's complete Android 3.0 Honeycomb walkthrough.)
Now that Larry Page is back in command of Google actual however, could we see any mending of the Apple fences?