Can Apple Hurt Google?

As we reported earlier, Apple has decided to ditch the default Google 'YouTube' App from iOS 6. For the records sake, the YouTube app for iOS was built by Apple, not Google. The decision to kick out YouTube app may eventually end up benefitting Google more than it did earlier. Why? Because now, Google will be able to monetize the app by inserting advertisements in videos. The earlier app was built by Apple and it didn't carry any advertisements.

Let's look at the Google - Apple engagement. The iPhone was launched with the Google Maps, YouTube and Web Search applications as 'default' applications on iOS back in 2007. Fas forward to today, and we have Maps and YouTube ditched already and Web-Search can be kicked out any time. If Apple decides to get rid of the Web Search app, then Google's going to lose a major share of the online search - the thing that gives Google its bread and butter. You may argue that Google will just be fine without the Web Search app but the 'power of default' can't be underestimated.

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Most of the people would never change the default settings on their devices. If Apple decides to offer Bing, then most of the people would settle with Bing! In 2010, there were rumours of Apple & Microsoft in talks to offer Bing search as the default on Apple devices. If Apple takes that step, Microsoft will up their battle against Google and Google will lose all the revenues it makes from the searches that originate from the iOS devices. Did you know that Google pays about a billion dollars every year to Apple to remain the default search engine on iOS? Reportedly, Google is believed to make more money from the searches that originate from iOS devices than the Android devices; the platform it owns. Isn't that interesting?

But Apple, being one of the top companies in the world, does not need Google's money. Apple's been traditionally paying a lot more attention to user experience. If Microsoft convinces Apple to switch to Bing, Google might be the one to suffer the most.

What's your take?

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