“Google has potentially $9.4 billion in gross revenue at risk if it’s unable to renew a contract with Apple for mobile Safari toolbar searches, says a Citigroup report, which says potential losses depend on how many Apple customers stick with Google’s search engine,” Reinhardt Krause reports for Investor’s Business Daily.
“Google stock had fallen 3.5% as of Wednesday’s close since The Information reported on Nov. 24 that Google’s default search agreement with Apple might be in peril,” Krause reports. “That report said the Apple-Google deal is set to expire in 2015, possibly as soon as January. Apple’s iPhone 6 sales have been stronger than projected, increasing the potential impact.”
“Citigroup analyst Mark May estimates that 60% of Google’s 2014 mobile search revenue will come from its default search deal with Apple,” Krause reports. “Apple recently switched its mobile search provider for voice app Siri from Google to Microsoft’s Bing.”
Read more in the full article here.
Google’s going to rue the day they got greedy by deciding to try to work against Apple instead of with them. – MacDailyNews, March 9, 2010
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]