Google CEO and Apple board member Eric Schmidt is pretty pleased with the iPhone 3G, telling Fortune it "shows the power of a device that is a step forward".

Schmidt was speaking yesterday at the Brainstorm Tech event. He noted, "The iPhone has a fully functional browser. We can show desktop ads, not mobile ads. That’s a huge change from our perspective."

Naturally conversation soon turned to Android, Google’s own mobile phone software. Handset makers will deliver the first Android phones by the end of the year, the report claims. And the success of the iPhone is good news for Google and the Android platform.

"The iPhone’s competitors all have devices or devices coming out. It’s really simple," Schmidt added. "A phone is a GPS, a camera, a computer, and a browser,” he said. Schmidt sees more opportunities for Google as a result.

Schmidt also predicted the best social networking applications will now move to the mobile world, telling of one Android application which will tell users where they are, what’s around them and what businesses are in the local area. “The most interesting social applications will be mobile-based because people are always moving,” he said.


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