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Thread: Apple's iPhone and iPad Account for 2% of Google's Revenue This Year

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  1. #1
    MMi Staff Writer Akshay Masand's Avatar
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    Default Apple's iPhone and iPad Account for 2% of Google's Revenue This Year


    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.
    It is likely that Google will try to take a more aggressive approach in offering maps for the iOS platform. At a recent press briefing, the company confirmed that enhanced maps will come to the iOS platform in the form of an app.

    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

    Twitter: @AkshayMasand

  2. #2
    My iPhone is a Part of Me iRevival's Avatar
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    I'm looking forward to the enhanced maps. Whether they come from apple or google it will be a welcome addition. I use mapquest right now which I feel is the best free maps app, if not the best. I love it, and something like that integrated into iOS would be wonderful.
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  3. #3
    iPhoneaholic LSZ33's Avatar
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    I too am looking forward to enhanced maps. I recently tried out the galaxy note and was surprised to find out google maps on android had turn by turn natively. It would then force the Garmin's and tomtom's of the world to bring down the price of their apps. I love both garmin & tomtom's apps, but they are pricey especially when you start talking about US an Euro maps.

  4. #4
    My iPhone is a Part of Me TheDirtyDiddler's Avatar
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    Navigation > Maps

  5. #5
    My iPhone is a Part of Me tsatryan's Avatar
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    Does that revenue all come from 1st generation iPhones? Not to be picky, but can't a website dedicated to the iPhone/iPad update it's five year old photos?

  6. #6
    iPhoneaholic
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    Quote Originally Posted by LSZ33 View Post
    I too am looking forward to enhanced maps. I recently tried out the galaxy note and was surprised to find out google maps on android had turn by turn natively. It would then force the Garmin's and tomtom's of the world to bring down the price of their apps. I love both garmin & tomtom's apps, but they are pricey especially when you start talking about US an Euro maps.
    Android has had turn by turn navigation natively since....well....ever. Its not a new feature. The Maps app is also quite a bit better and way more useful on Android.

    I have no doubt that whatever Apple tries to replace Google Maps with will be way inferior compared to Google Maps. It'll be in 'beta' for the next 2 years and then the iPhone 7 will get it as its main feature to upgrade and Apple will limit it to only the new iPhones even though the old ones can run it just fine.

  7. #7
    iPhone? More like MyPhone
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    Screw maps. I need 3D maps like I need an eleventh toe. Get me a solid Gmail client on iOS. Gmail for iOS by Google is an absolute embarrassment. Good thing there is Sparrow and the Sparrow+ tweak...that's $3 Google didn't get from me.

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