14 DAY TRIAL // Mobile industry leader Apple has a deal with Google which allows the latter’s search engine to be the default search solution on Cupertino’s products. But this partnership is due to expire this year, so industry watchers are very concerned about what might happen next.
Apple and Google aren't exactly best buds, so naturally, scenarios where Apple refuses to renew the deal with Google have already appeared on the horizon.
Analysts at USB have said that Google investors are right to feel worried, but they don’t view the possible breaking of the partnership as such a cataclysmic event. If that were to happen, they say, it could cost Google “only” 3% in net revenue in real life (as seen at Apple Insider).
Apple and Google have been competing since forever
That’s actually something Google could cope with. UBS thinks the search behemoth isn't poised to lose more because even if Apple changed the default search engine tomorrow, 50% of the iOS users would change the default engine back to Google.
And since Google wouldn't have to pay Apple a lump sum anymore, the overall effect wouldn't be a negative one, on the contrary.
Google and Apple have what can be best descried as a “frenemy” relationship. Google might be the default search engine on iOS devices, and it has even developed a bunch of apps especially tailored for the iOS platform, but Google’s Android OS has been iOS’s fiercest competitor.
Apple is also involved in a number of lawsuits against several Android device makers, and some of them were unleashed even as Apple’s former Chief Executive Steve Jobs was still alive.
So what options would Apple have if the company decides to terminate the partnership with Google this year? Well, the first alternative that comes to mind is Yahoo.
Apple has several options up its sleeve
In a similar scenario, Mozilla recently dropped Google Search as a default app in its Firefox browser and gave the reins to Yahoo. What happened next? Google’s desktop market share plunged below the 75% threshold for the first time in years, while Yahoo’s saw a boost.
So if Apple decides to go with Yahoo, it won’t be good news for Google. On the other hand, Cupertino might opt for Microsoft’s Bing, which is already used to power its intelligent virtual assistant Siri.
Another option would be for Apple to start building its own search engine. Back in 2012, Google Maps was replaced by Apple’s own Maps service. Also in 2014, the company offered the services of Duck Duck Go as a second alternative.
Should Google have read between the lines?