Apple Insider is reporting that Apple CEO Steve Jobs feels personally betrayed by Google’s decision to start producing iPhone-a-like Android smartphones. Apple Insider quotes a big article in the New York Times which closely examines what it says has developed into a “personal” feud between Apple and Google, citing Jobs’ recent and well-documented less-than-complimentary utterances on the company. Although Apple declined to comment on the New York Times article, Larry Page and Sergey Brin, Google’s co-founders, have both denied that they have fallen out with their old friends at Apple, and other top folks at Google are making similarly warm overtures. Here’s part of a statement issued to the NYT by Google chief executive Eric E. Schmidt:

“I continue to believe, as many do, that Steve Jobs is the best CEO in the world today, and I admire Apple and Steve enormously.”

So there you have it. However, Apple’s ominous silence on the matter, as well as the likes of Harvard Business School professor David B. Yoffie telling the NYT that “it is going to get uglier”,  makes us think that we still haven’t heard the last of all this, not by a long shot.