Apple and Google Tenuous Teammates

SAN FRANCISCO -- In addition to the new line of iMacs and applications running on them, Tuesday's meeting at Apple's (AAPL Quote - Cramer on AAPL - Stock Picks) headquarters spotlighted the company's burgeoning relationship with fellow Silicon Valley giant Google (GOOG Quote - Cramer on GOOG - Stock Picks).

Apple's Chief Executive, Steve Jobs, said that users of the company's new iLife suite of audio-visual applications will be able to post videos directly to Google's YouTube Web site.

Also, iLife enables people use Google's AdSense program to run advertisements on a Web site or blog, and charge fees for them. Apple is keen on the arrangement because it encourages amateur Web developers to use its software.

Google benefits by getting a share of the ad fees and, more importantly, expanding the number of Web sites using AdSense.

The two companies have flirted with each other on small-scale projects like this in the past. Apple's TV set-top box, for instance, lets users watch YouTube videos on their living room TV. Apple's iPhone also runs Google's search and mapping applications.

"We're doing things together that are going to make our products more desirable," said Jobs before a gathering of analysts and journalists. "We have a good relationship with Google, and we like working with them."

The closeness between Apple and Google may owe something to the role that Google CEO Eric Schmidt plays as a member of Apple's board of directors. Also, many Google employees are using iPhones.

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