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  • Google Pays Apple $100 Million for iPhone Search


    According to a report in Silicon Valley Insider, Apple pockets a cool $100 million US every year to keep Google as the default search engine on the iPhone. Though that amount is small change compared to the company's reported $50 billion in annual revenue, it may be enough motivation to keep Apple from building its own search engine, as rumors have suggested. However, another company with deep pockets is reportedly in talks with Apple: Microsoft.

    Apple and Google's war has come more and more out into the open since Google CEO Eric Schmidt resigned from Apple's Board of Directors. At the iPod unveiling last month, Steve jobs reportedly said flat-out that "Google wants to kill the iPhone." The two companies are directly competing in online advertising (Quattro vs. AdMob), browsers (Chrome vs. Safari), and, smartphones (Android vs. iPhone). However, Google powers the Maps application in addition to online search, and Apple's recent purchase of mapping company PlaceBase raised speculation that they were thinking about developing their own inhouse map engine. PlaceBase's CEO Jaron Waldman became part of Apple's new Maps Team, which began searching for engineers to help "take Maps to the next level, rethink how users use Maps and change the way people find things."

    Years of rumors that Apple was working on its own search engine have never been substantiated. In November 2008, TechCrunch surveyed all the major search players and found that Apple wasn't hiring away the programming talent that would be needed to mount a serious challenge to Google. And today's Silicon Valley Insider report quoted its source - someone that it said was "familiar with Apple's operations" - as saying that the rumor that Apple is building its own search engine "isn't credible" because "there's too many options" for search on the market. Last month reports began coming in of Apple and Microsoft negotiating over making Bing the default search engine on the iPhone. BusinessWeek reported today that those talks are proceeding well, with a financial analyst saying that the "likelihood of Microsoft winning Apple search deal for iPhone is high."
    This article was originally published in forum thread: Google Pays Apple $100 Million for iPhone Search started by Paul Daniel Ash View original post
    Comments 28 Comments
    1. sziklassy's Avatar
      sziklassy -
      WOW... just wow....
    1. tudtran's Avatar
      tudtran -
      That's a lot of money but a smart move by Google.
    1. lolcats1's Avatar
      lolcats1 -
      all this talk about "default" search engines. in all cases we can set the search engine, and in Mozilla we can add ones not listed.

      so what point is made here?
    1. iAlone69's Avatar
      iAlone69 -
      google is the best search engine right now hope it stays that way or iphone will lose another custumer
    1. JA.3's Avatar
      JA.3 -
      All those millions being thrown around.. I'll take a measly $500 to keep google as my default search engines, please?
    1. lylesback2's Avatar
      lylesback2 -
      Quote Originally Posted by pauldanielash View Post

      Apple and Google's war has come more and more out into the open since Google CEO Eric Schmidt resigned from Apple's Board of Directors. At the iPod unveiling last month, Steve jobs reportedly said flat-out that "Google wants to kill the iPhone." The two companies are directly competing in online advertising (Quattro vs. AdMob), browsers (Chrome vs. Safari), and, smartphones (Android vs. iPhone). However, Google powers the Maps application in addition to online search, and Apple's recent purchase of mapping company PlaceBase raised speculation that they were thinking about developing their own inhouse map engine. PlaceBase's CEO Jaron Waldman became part of Apple's new Maps Team, which began searching for engineers to help "take Maps to the next level, rethink how users use Maps and change the way people find things."
      I think you mean iPad.
    1. rhekt's Avatar
      rhekt -
      hamburgers
    1. saifeeab's Avatar
      saifeeab -
      Apple and Google's war has come more and more out into the open since Google CEO Eric Schmidt resigned from Apple's Board of Directors. At the iPod unveiling last month, Steve jobs reportedly said flat-out that "Google wants to kill the iPhone."[/QUOTE]

      I would not mind at all actually. I can't wait for the Google Nexus to be a little more accepted in terms of available applications & games. I would gladly make the switch to it then. I am a little tired and bored of the iPhone now and Jobs' authoritarian control over its development...adding small updates and features and turning those into new models and big public launches.