Google executive chairman Eric Schmidt has a response to Tim Cook's not-so-subtle jab at Google's apparent lack of respect for the privacy of its users, basically saying that the Apple CEO was clueless about how Google works.

In an interview aired on CNBC's Squawk Box on Wednesday, Schmidt was asked about his reaction to Cook's open letter to users about privacy, where Cook said the following:

"We don't build a profile based on your email content or web browsing habits to sell to advertisers. We don't 'monetize' the information you store on your iPhone or iCloud. And we don't read your email or your messages to get information to market to you."

In response, Schmidt said that Google has been delivering targeted ads for more than ten years but not any of the other things that Cook was hinting at in his letter. He also said that the goal of Google is to "make your life better" using products that make everyday living faster and easier.

"I thought, 'Is he really familiar with how Google works?'" Schmidt said (video) "We do targeted ads against Gmail, which we've done for a decade, but we don't otherwise use that information."  

"What we are doing is we're using information with your permission to make your life better," he added. "And you can turn all of that off in one click."

In a separate interview on Bloomberg's "Market Makers" with Stephanie Ruhle and Eric Schatzker where Schmidt and Google senior vice president were promoting a book they co-authored titled "How Google Works", Schmidt dismissed questions from the anchors about his reactions to the long lines of people that have showed up outside Apple stores across the United States when Apple launched the iPhone 6 and iPhone 6 Plus on Sept. 19.

"I'll tell you what I think. Samsung had these products a year ago," he said (video).

The anchors pressed with the line of questioning, saying that smartphones running on Google's Android mobile platform have failed to match up to the revenue that Apple is making with its iPhone. Schmidt did not provide a definite response but said at the beginning of the interview that Google is "not first and foremost about revenue," but about "innovation and impact."

"The fact of the matter is you can make a small market share with a lot of profits or you can make the same amount of money with a much larger market share with lesser profits," he said. "We go for volume in our strategies.

Rosenberg chimed in, saying that the business strategy Google chose to take is more beneficial for customers, as it creates "far more choices for consumers" while "driving the cost of smartphones down."

Research firm International Data Corp. estimates that Android dominated 84.7 percent of the international market share, while Apple has 11.7 percent. The very small piece of the pie that remains is shared by other players such as Windows Phone and BlackBerry.

Schmidt further went on to speak about the competition coming from Apple and other technology companies. He said that the "brutal" competition between Google and Apple has provided "enormous benefits for consumers worldwide" and he considers it the "defining fight of the computer industry today."

"In China, there are phones that are $100 retail phones unsubsidized. In India, there are $70 retail unsubsidized phones," he said. "Think of the impact on humanity. Because these phones are - they're entertainment. They're education. They're safety. They're a window on the world."  

As with other major industry players, Rosenberg said Amazon "keeps us on our toes" and that Google will most likely partner with Chinese e-commerce website Alibaba if possible. Schmidt also pointed out that Apple, while being a "very tough" Maps and phone competitor," is also a "large Google search partner."

"We work collectively to grow the industry as opposed to fight over small portions," he said.  

Asked what he thought about which the best product is out there, whether it was made by Google, Apple or other companies, Schmidt said:

"How about the Internet? Ten years ago, nobody in our audience was sitting there with their mobile phone next to their bed. Ten years ago, Internet access was largely in people's offices and occasionally at home. This connectivity in mobile revolution has changed everything."