San Francisco, Aug 3 (DPA) Google chief executive officer Eric Schmidt has resigned from the board of Apple because of potential conflicts of interest, Apple said in a statement Monday.

The move comes as the two companies increasingly find themselves competing in the same arena. Google's Android operating system power phones that are a major rival to Apple's iPhone, while its Chrome browser and its plans for a Google operating system also compete with Apple's products. Schmidt has been with Google since 2001 and on Apple's board since August 2006.

'Unfortunately, as Google enters more of Apple's core businesses, with Android and now Chrome OS, Eric's effectiveness as an Apple board member will be significantly diminished, since he will have to recuse himself from even larger portions of our meetings due to potential conflicts of interest,' said Apple CEO Steve Jobs.

'Therefore, we have mutually decided that now is the right time for Eric to resign his position on Apple's board,' he added.

'I have very much enjoyed my time on the Apple board; it's a fantastic company,' said Schmidt in a statement. 'But as Apple explained today (Monday) we've agreed it makes sense for me to step down now.'