“The deal that makes Google’s search engine the default option on Apple’s Safari browsers expires soon, and that could be bad news for Google if the companies don’t reach a new agreement,” Althea Chang reports for CNBC.
“Google could potentially lose billions in gross revenue if Apple switches to a different default search engine, according to a UBS research note Monday,” Chang reports. “Google this year stands to bring in about $7.8 billion in gross revenue—about 10 percent of total revenue—from its existing search engine deal with Apple, according to UBS.”
“If Apple switches to a competitor, that could represent a 5 percent headwind, or about $3.9 billion, to 2015 gross revenue, the note said. UBS made those projections under the assumption that 50 percent of Apple iOS users switch their default search engine back to Google,” Chang reports. “If Google does lose the deal, Yahoo search or Microsoft’s Bing would likely be Apple’s new default search engine, according to analysts from R.W. Baird.”
Read more in the full article here.
MacDailyNews Take: That’s an interesting assumption that 50% would switch back to Google. We wonder if that number is based on any facts or is just pulled out of the analyst’s you-know-where.
From the earliest days at Apple, I realized that we thrived when we created intellectual property. If people copied or stole our software, we’d be out of business. If it weren’t protected, there’d be no incentive for us to make new software or product designs. If protection of intellectual property begins to disappear, creative companies will disappear or never get started. But there’s a simpler reason: It’s wrong to steal. It hurts other people. And it hurts your own character. – Steve Jobs
Here’s what Google’s Android looked like before and after Apple’s iPhone:
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