Apple Renews Search Deal with Google: Frenemies Again?
The CEO of Google revealed in an interview that Google and Apple had renewed the contract that keeps Google as default search engine on the iPhone. Eric Schmidt made reference to the deal in an interview with Charlie Rose
, though he didn't give more detail about how much the arrangement would cost his company. Industry insiders say that an arrangement like this usually costs hundreds of millions of dollars
and lasts two or more years.
The deal is the latest indication of two "frenemies" collaborating on some projects while they fight tooth and nail in other areas. Steve Jobs has been up-front about his desire to "beat Android
" and keep the iPhone dominant with hardware innovation and improving the feature set in iOS. Apple has also made a major push to directly attack Google where it is dominant: mobile advertising. Apple tried to buy AdMob in 2009, but Google beat them out with a higher offer. Apple picked up Quattro Wireless in response and created iAd, which has been so successful that it will equal Google's share by the end of this year
, according to IDC.
Given the two companies' increasing competition, there's been much speculation over the past year that Apple would make Bing the default search engine on iOS. However, given that Google considers Bing, not Apple
, to be their top competition, they're apparently willing to forgive and forget. It's not all that clear why, though: Bing has only 10 to 11% of the US search market, as compared to Google, which has a 65% dominance in US search.
, image via Geek.com