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Apple is About to Reduce Google's Revenues

This article is more than 10 years old.

As we know Apple is about to introduce its own mapping application, something similar in type to Google Maps as part of the new iOS6. It will obviously replace Google Maps on Apple's own hardware. Which is a problem for Google:

Apple's expected move to replace Google Maps with its own mapping application is a particularly dramatic example of how the rivalry between the companies has been evolving.

Google has invested huge sums in its mapping technology over the years, and about half of its map traffic now comes from iPhones and iPads. Among other things, the traffic from those devices reveals valuable location data that helps improve the mapping service and provides features like real-time traffic reports.

More to the point, Google charges Apple for having Maps loaded onto that Apple hardware. And as I've noted before, this is a substantial sum: rather more than Google currently makes from Android for example.

The figures also suggest that Apple devices such as the iPhone, which use products such as its Maps as well as Google Search in its Safari browser, generated more than four times as much revenue for Google as its own handsets in the same period.

Google is obviously making changes to its own business practices at the same time:

But beyond Apple, Google has begun to charge developers for API access to Google Maps data, which heretofore has been free for all but the biggest customers, like Apple.

But as and when Apple no longer preloads Google Maps onto the Apple mobile hardware that is going to be a revenue stream that Google will lose.

Time perhaps to start the speculation about when Apple will look for a new search partner?