Sam OliverDownplaying rumors that Apple could be working on its own search engine, Silicon Alley Insider cited an anonymous source Thursday as stating that the iPhone maker has no intention of getting into the business that Google dominates. That same source claimed that Apple earns more than $100 million a year in a revenue sharing deal with Google.
In addition to being the search provider for Safari on the iPhone, Google also powers the native Maps application included with Apple's handset. The source claimed that making Google Maps a provider for the initial iPhone in 2007 was a simple two-week process. But when GPS was added to the iPhone 3G, negotiations between the two technology giants allegedly lasted six months.
"Google wanted access to all sorts of data from the maps, but Apple didn't want to give it up, according to this person," the report said.
While the $100 million in annual revenue is cited as a reason for Apple to not develop its own search engine, it's also a fraction of the $15.68 billion the company posted in revenue last quarter alone.
The news follows rumors from weeks ago that Apple and Microsoft were in talks to make its Bing search engine the default provider for the iPhone. Control of the handset's Maps application was also said to be a part of those ongoing discussions.
In spite of their ongoing partnership, a perception of rivalry between Apple and Google has grown in the public's eye since Google CEO Eric Schmidt resigned from Apple's board of directors last August. Both Google and Apple were the subjects of a Federal Trade Commmission investigation for potential antitrust ties. Schmidt chose to resign because Google's Android mobile operating system and forthcoming Chrome OS netbook operating system look to compete with Apple's iPhone and Mac OS X, respectively.
Apple, too, showed signs in 2009 that it intends to tread into Google's territory soon. Last summer, Apple purchased Google Maps competitor Placebase. Later in the year, it sought to hire a full-time employee to take its iPhone Maps application "to the next level."
Apple has also entered the mobile advertising business after its purchase of Quattro Wireless, believed to be worth $275 million, in December. Through the acquisition, Apple also named the former CEO of Quattro Wireless, Andy Miller, to a new position: vice president of Mobile Advertising.
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51 Comments
100million dollars is a drop in the bucket for apple.
I think it's more important not to alienate their customers.
Instead of getting into the search business or switching to bing, they should increase their share of the search ad revenue coming from the iPhone.
That's like one of these companies bringing over a 20 dollar bottle of wine to compliment dinner.
100Million! oOooOooOOOOOooooooh!
Apple has no intentions of getting into the search engine, but we have purchased Placebase for doing something with Maps and we purchased Quattro Wireless, for doing something with Mobile Advertising. We do not, however, have any intention of entering the search business!
But if they did, I wonder what a Apple search engine would look like? And I wonder if Apple would revive the name of "Sherlock"? Hhmmmm... \
So this begs the question, how much is Apple getting paid to keep Flash off the iPad, and by whom?Or another way, How much is Apple saving by not having to pay Adobe for Flash support?Hmmm....
100million dollars is a drop in the bucket for apple.
I think it's more important not to alienate their customers.
Instead of getting into the search business or switching to bing, they should increase their share of the search ad revenue coming from the iPhone.
the 100 M is only about a .2 percent of their total revenue. BUT remember there are no costs associated with this revenue. So its basically pure profit. Specifically 1.6 percent of profits.
Again not huge but not insignificant.
What did that map company do? I am wondering if Apple would like to "customize" the look ad feel of maps but still use Google for the back end stuff.