Analyst Gene Munster from Piper Jaffray in a note to investors suggests that about 2% of Google’s annual revenue comes from the iPhone. His note highlights Apple’s reasons for extracting Google (more specifically Google Maps) from the iOS platform. We expect that an announcement will be made next week at WWDC where Apple is said to announce its own replacement for Google Maps.
Munster had the following to say about Google revenue from the iOS platform:
We estimate Google will generate gross mobile revenue of ~$4.5 billion in 2012 with approximately $500 million coming from display and $4 billion from search. We believe iOS is likely to be the biggest or close to biggest portion of mobile search revenue. Assuming the iOS generates around 40% of total mobile search revenue ($1.6 billion) and Google keeps half after TAC, iOS would generate about 2% of Google's net revenue in 2012. We do not expect any material impact to these assumptions if Google Maps were to no longer be the default mapping application on iOS.
As the competition between the two increases, consumers will be the ones that will end up benefitting as they will get to use better technology as a result. Until then, everyone will just have to be patient.
Source: CNN Money