The clash between Apple and Google is getting racy day by day. It seems that Apple Inc. is soon going to lose its signature application—YouTube in the latest beta version of iOS 6 in the tug-of-war between the two giants. Earlier, on releasing the YouTube application for iPhone, iPad and iPod Touch, Apple had replaced Google mapping software with its own built-in maps application. And now it’s YouTube that the company has removed from its mobile operating system.
Apple revealed that it removed the application as license to include YouTube in the iOS operating system ended. Apple plans to replace it with a pre-installed video application from some other company.
However, there are some analysts who believe that this move to remove YouTube app can prove to be more beneficial for Google. As YouTube was built by Apple and not Google as a standard part of iOS, the app wasn’t touched in years. Earlier, Google was not able to earn revenue from YouTube app with advertisements, but now with its own app, it can upgrade frequently and can earn more.
Keeping this in mind, it’s more likely that it might be Google and not Apple who decided not to take the relationship further. Google, world’s number 1 search engine giant, is also making its cellphone with the most popular Android operating system. This makes it Apple’s chief rival. Google’s acquisition of Motorola Mobility also offers a direct challenge to Apple’s iPhone.
Removing YouTube application however, can also hurt Google where it counts. The thought of Bing being the default search engine for iOS devices and Google a mere option can be devastating for the latter.
Also to be noted is the fact that in 2010, Microsoft and Apple were in talks about this option. But that never happened. It is a known fact that Google still dominates the search engine market. And as the world is increasingly relying on mobile, Google still owns a greater piece of the pie. Android and iOS are the only two platforms that matter in the mobile sector. Again, Google is the default search engine in iOS. And Google owns Android. So it is plain clear.
Also there is Microsoft hoping that Windows Phone and the forthcoming Surface/Windows 8 tablets can change this equation. And the more direct route for the company to change the Google equation would be to pay Apple hoards of money to make Bing the default in iOS.
And for this, there are two problems. One, Apple doesn’t need the money. Even aplenty.
However, some people believe that Google now pays Apple more than $1 billion yearly, being the main search engine for iOS. Just two years ago, the number was closer to $100 million, which is a great growth. But Apple’s current revenue of $150 billion makes this $1 billion just a drop in the water. So even if Microsoft offers $2 billion, or $5 billion — it still probably wouldn’t be enough to be meaningful to Apple’s bottom-line.
And this leads to problem number two. Apple’s main focus is and has always been user’s experience. And if the giant decides to switch to Bing, it would only be because of better experience the latter offers.
Bing has been making some social integration to make the search engine more interesting to Apple. After all, now Twitter and Facebook will be fully baked into iOS. And Microsoft has search deals with both of them — while Google has deals with neither of them. Apple gives no care about Google+ search integration. In fact, that may be another factor tipping the scales in Bing’s favor, since you could argue that it makes Google search worse.
More important than money, the agreement between Microsoft to work closely with Apple to create a version of Bing that blows away what Google can offer in terms of web search on iOS devices can be a breakthrough.
Apple is openly accountable for billions of dollars being sent Google’s way via search on its devices. This will only keep on increasing. It’s believed that Google makes more money off of iOS devices through search than they do through Android devices. In other words, Apple is in some way subsidizing a bit of the major war against itself.
If a Bing deal ever happens, that may be the key factor. Apple sends billions of dollars Google’s way and the giant doesn’t care about the money being sent back. It just needs to cut off that channel.
Earlier today, news came that Google’s Chrome browser has overtaken Microsoft’s Internet Explorer as the most-used browser on the web. This comes as an important news because not even Mozilla’s Firefox was able to accomplish this feat — and Google did it in just four years. Chrome is like growth hormone for Google Search. No one types in URLs anymore, they simply search.
At the same time, with Mountain Lion, Apple added an “omnibox” to Safari, so people will be searching a lot more. And the default search engine there? Again, Google.
Microsoft needs Apple to make Bing important. Apple needs Microsoft in order to stop paying Google billions. This is so clear.