According to Apple the decision was mutual, and was caused by increased conflict of interest as Google's Android platform and Chrome operating system directly compete with Apple's core businesses.
"Eric has been an excellent Board member for Apple, investing his valuable time, talent, passion and wisdom to help make Apple successful," said Steve Jobs, chief executive of Apple.
"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."
Earlier this year Schmidt said he would not step down from his role at Apple, despite coming under scrutiny from the US Federal Trade Commission.
At the time Schmidt said that when Apple's board discussions turn to the iPhone he excuses himself and that he has not considered resigning due to conflict of interest.
Schmidt will now resign from Apple's board having served since August 2006.
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