Sterne Agee: Apple-Yahoo alliance would feel lucky

“Press reports indicate that Apple is in discussions to broaden its partnership with Yahoo in providing more content on iOS,” Sterne, Agee & Leach analyst Shaw Wu writes for Barron’s. “Yahoo already provides data for stocks and weather apps and parts of Apple’s Siri function. We believe this makes sense for both Apple and Yahoo as they battle a common competitor in Google.”

“We believe progress is worth watching as industry data have shown that iOS is by far the best platform for mobile monetization. This could become an issue for Google as its ties with Apple are cut,” Wu writes. “Yahoo has somewhat become the ‘Switzerland’ of Internet companies and an ideal partner for Apple as it isn’t in the mobile-devices business and doesn’t own a mobile device OS, popular Web browser, or social network.”

Yahoo CEO Marissa Mayer<br>(photo by Brigitte Lacombe)
Yahoo CEO Marissa Mayer
(photo by Brigitte Lacombe)
Wu writes, “Despite Android’s much larger market share than iOS at 70% versus 22% of global smartphone shipments, iOS is the best platform for monetization. The reason is likely because iOS accounts for 42% of mobile traffic versus 31% for Android and 51% share in revenue versus 30% for Android… We continue to believe that Apple is positioned to outperform in this tough macroeconomic environment with its defendable strategic and structural advantages and its vertical integration.”

Read more in the full article here.

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5 things we learned from Yahoo CEO Marissa Mayer’s tweet from Apple Store Fifth Avenue last night – December 19, 2012
Yahoo CEO Marissa Mayer announces major overhaul of Yahoo’s popular email service – December 11, 2012
Why does Yahoo CEO Marissa Mayer consider Apple’s Siri the perfect search engine? – October 19, 2012
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    1. She’s a brilliant business mind, smart enough to understand the importance of promoting herself. She has read Dale Carnegie, you can be sure of that. Just look at how she effortlessly won over the MDN faithful, only hours after resigning from arch fiend Google. I’d never blame you for appreciating her message, KarlV.

      It’s too bad the rest of the Google brass are so nerdily dismissive of the idea of personal presentation, as if it were an old-fashioned idea that no longer made any difference.

      Founders Larry Page and Sergey Brin do the self-absorbed visionary act well, but that doesn’t turn heads in quite the same way.

      As for Board Chairman Eric Schmidt, whose favorite word is “creepy,” he looks like a toad in a suit.

      1. Gee, I mentioned my objection on another Yahoo story and now this one. If you find two mentions of a point tiresome on two separate incidents then you have my sympathy for your condition. All the best to you in your treatments.

  1. Wu is full of crap: “The reason is likely because iOS accounts for 42% of mobile traffic versus 31% for Android and 51% share in revenue versus 30% for Android…”

    Those numbers are figments of his imagination. iOS accounts for more like 70% of mobile traffic and revenue.

  2. I think Yahoo could help out Apple in some critical areas. Obviously search. And they have a financial, sports, entertainment expertise that could serve as a newspaper for Apple. It could work very nicely. They don’t compete in anything so…………buy some YHOO, it still has room to go up.

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