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Based on a quote from John Heilemann’s article on Steve Jobs, the Internet is bubbling with rumors that Google might buy Apple. Philip Elmer-Dewitt of Business 2.0 discusses the rumor here.

The two companies have cultures that are similar in some ways, so the rumor has some face validity.

Google + Apple = something interesting

Apple would give Google a platform to roll out some interesting consumer devices. As I’ve noted in other posts, including my discussion of the Heilemann article, the iPhone includes a few Google web applications, including mapping.

But Google really hasn’t shown much interest in the high volume hardware business. Sure, Google builds most of the machines in its data center from off-the-shelf hardware. Google also sells a couple of search appliances, but those are rack-mounted devices designed for a server room.

Google has shown a great deal of interest in networked storage, however. Given the pervasive nature of broadband Internet access in the US, Europe and the Pacific Rim, it’s only a matter of time until we see PDAs and portable computers that rely on services provided by Google, Microsoft, and other vendors to store user email, images, music and documents.

Google doesn’t have enough cash to buy Apple… yet

In the end, Google doesn’t have the cash on hand to buy Apple. Matther Siegler at ParisLemon ran the numbers. Apple’s network is over US$100 billion and climbing, while Google has a net worth of $US158 billion. So a buyout doesn’t make much sense this month.

The iPhone is due in 8 days, and customers are asking if they can afford one.

As posted on  MacRumors.com, ApplePhoneGeeks.com and iPhoneMatters.com, AT&T has announced that iPhone customers will choose from several new rate plans when the device goes on sale June 29 at 6 pm local time.

iPhone users don’t want to look at the data meter while surfing

There’s no word yet on unlimited data plans. MacRumors claims an announcement may be made tomorrow, and that a 2-year service contract wil be part of the requirements.

I would assume that AT&T would want iPhone customers to sign up for an unlimited plan. It’s easy to consume several MB of data a month on a PDA or Sidekick, for example. The iPhone’s Safari browser promises a desktop web experience, which seem to require a decent data connection.

The iPhone is all about lock-in

On AT&T’s side, a 2-year contract requirement makes sense. AT&T wants to recapture former customers who have defected to other carriers over the last few years.

We’ll find out if Allen Stern’s prediction of US$1936 for a user’s first year with an iPhone is close to the mark. Until we see the new rate plans, we won’t know. I commented on this figure on June 6, and I have a feeling he’s right.

In this morning’s Honolulu Star-Bulletin, Mayor Mufi Hannemann claimed that he still prefers the City Council’s route for the proposed mass transit system - “in the short-term”. I discussed the upcoming environmental impact study, which will include the council’s route and two alternatives that would serve the airport, on June 19. The mayor went on to say that if an airport loop was necessary, the state could pay for that extension from its airport funds.

The mayor’s request is a clever one

Hannemann hasn’t given up on including the airport in the city’s train/bus/whatever plans. The state will be closely involved in any mass transit proposal, because some of the lines would have torun on state roads. Why not get the airport, which collects a few billion dollars in taxes and fees each year, to help pay for the line if it goes through the airport?

The ever-helpful Charles Djou now claims that the mayor’s statement indicates the city doesn’t have enough money to build a mass transit line.

It’s easy to say no in City Council, and Djou has said “no” many times over the last few years. Does Djou realize that lieutenant governors don’t get to say “no” very often? If Djou does follow through on his announcement, and he wins the lieutenant governor’s seat as a Republican, he’ll be in a different set of circumstances.