Appoogle? Goopple?

Two of Silicon Valley’s hottest companies, Apple and Google, are increasingly warming up to each other. Following his placement on the Board of Directors for Apple, Google’s CEO, Eric Schmidt has led his company into more integration with Apple:

• The iPhone has YouTube videos easily accesible from the home screen.
• iMovie ‘08 now allows you to export videos directly to YouTube.
• iWeb now supports simple integration of Google Maps and AdSense.

The benefits for Google seem to be obvious — their video property gains further distribution and content. Plus, YouTube gains some of the cachet surrounding Apple. Further, the AdSense distribution adds to their bottom line.

But what about Apple? In a recent Q&A, Steve Jobs was asked about the relationship:

Q:”Mentioned AdSense, what’s the relationship between Apple and Google?”

A:Steve: “We are working closer with Google, they offer back end services we want to tie into our offerings. Google likes our products, too.”

Is there more? Is Google going to share revenue from iWeb AdSense like they do with MySpace and others? Are they buying Apple servers (though they are famous for building their own)? Does Jobs just think Google provides services that compliment their own?

At the same time, Google is competing with Apple’s iWork offerings through Google Apps. iPhoto Web Gallery is now a competitor to Picasa Web.

What’s the end game? Let me know what you think.