Apple's Deal With Google for iPhone Search Pegged at Over $100 Million Per Year

Discussion in ' News Discussion' started by MacRumors, Feb 11, 2010.

  1. macrumors bot


    Apr 12, 2001

    Silicon Alley Insider reports on information from a source claiming that rumors of Apple looking to develop its own search engine are untrue and that Apple's current deal with Google to provide default search functionality for the iPhone is currently worth over $100 million per year to Apple in revenue sharing.
    A report from BusinessWeek last month had in fact claimed that Apple and Microsoft have been in talks to make Bing the default search provider for the iPhone as the relationship between Google and Apple has reportedly soured as competition between the two companies has become increasingly intense.

    Article Link: Apple's Deal With Google for iPhone Search Pegged at Over $100 Million Per Year
  2. macrumors 6502a


    Like the relationship with microsoft and apple is any better? Bing isn't that good.
  3. macrumors 65816


    Apr 26, 2005
    What's a $100M when there's a stash of close to $40B on the books? The competition between Apple and Google will intensify moving forward. I wouldn't discount Apple creating a "search" business over the long-term.
  4. macrumors 603


    Jun 4, 2007
    Makes sense.

    I wish someone else would come up with a search engine to compete with google though. The way google treats its business partners sucks. So I would like someone to really give them a run for their money. Even with Yahoo and Bing essentially coming together this year it is still not a formidable challenge to Google.

    That being said, I can believe they are making that much money off searches from their products, and that is a nice add on for the revenue.

    I think having google search on an iPad will even be more worthwhile as Google can better display the ads.
  5. macrumors 68040


    Apr 11, 2003
    Maybe they should invest $100 million a year in developing their own search engine. :D
  6. macrumors 601


    Jun 27, 2007
    Central U.S.
    I still think that all this Google / Apple hate talk is crap. They were in love with each other less than half a year ago. Then the feds started investigating their boards. It's all manufactured to make it look like there isn't anything shady going on. They still have a great relationship, I'm sure. Maybe not as great as it used to be, but still pretty solid I'll bet.

    Bing on iPhone? Seriously? I really doubted this when it was first rumored, and I wasn't surprised when it never came to pass. I guess there is still the OS 4.0 event next month, but come on, that's extremely unlikely. Steve Jobs holds grudges and Microsoft is a HUGE offender. Way more than Google, though Google is more recent.
  7. macrumors 601


    Feb 4, 2004
    Florida Resident
  8. macrumors 6502


    Sep 12, 2006
    Upstate NY
    Apple does like to keep an Ace up its sleeve.

    Just as they kept an Intel Version of OS X for years along with the Power PC version in case PowerPC chips were lagging then Apple could quickly switch to Intel.
  9. macrumors 601

    Nov 12, 2007
    You're kidding right? Those $100 million a year would give Apple more incentives to take bigger risks without taking money out of the banks for it. Apple would be more willing to "waste" $100m a year in research and development than to lose it forever. There's a big difference.

    It doesn't make sense for Apple to go into the search business at all. Apple is at this moment, crappy at offering web solutions. MobileMe is slow, no reason for it to be slow when they have huge money to invest into infrastructure (other than that $1 billion data center in NC, but 1 data center in US isn't enough). iWork is horribly limited and hasn't been changed in over a year. What other web solutions do they have that's successful?
  10. macrumors regular

    Feb 2, 2009
    Almost Heaven... WV
    Really? $100M is not a lot of money? Compared to what?

    In that case, I suppose $1M is nothing at all, so I'll be happy to provide my account and routing number to Apple's financial people... Deposits are accepted without the need for prior notice.
  11. Moderator


    Staff Member

    Feb 1, 2005
    Land of 10,000 Lakes
    I truly hope these two companies can work together going forward. This posturing over the mobile phone market is nothing more than destructive.

  12. macrumors 601

    Nov 12, 2007
    Compared to the fact that Apple has close to $40 billion dollars in hard cash? He meant to say that Apple could afford to lose over 100 million in exchange to investing into building in their own search engine.
  13. macrumors 6502a


    Sep 20, 2002
    It must be nice!

    Just think how much Bing would pay!
  14. macrumors 601

    Westside guy

    Oct 15, 2003
    The soggy part of the Pacific NW
    I realize there's at least a perception that Apple has, in past instances, punished another company for perceived slights - but given the complexity of the online world, companies like Apple, Google, and Microsoft hopefully know how to compartmentalize their disputes.

    It's like the Canada-US relationship. We have had significant long-term disagreements over the years, such as the softwood lumber dispute (I live in the Pacific NW, if you wonder why I thought of that one) - but it's not like either country has said "We're mad about your stance on lumber, so we're recalling our ambassador."
  15. macrumors 6502a

    Peter Harrison

    Dec 24, 2009
    Uh oh, hope I'm not starting yet another Mac rumour... But didn't Google buy the iGuide name? ;)
  16. macrumors 68000

    Oct 23, 2003
    Brunswick, MD

    The truth is, Google offers a lot of free Internet-based services that benefit practically everyone -- Mac users included. There's no reason Apple can't consider Google a "competitor" in the area of cellphones, while still considering them a "partner" with other things.

    Last I checked, OS X had the built-in capability of syncing Address Book contact info with Google, for example. What are they going to do? Rip it out of the next version of OS X, simply out of spite?

    They could, but that'd be counter-productive and would amount to a loss of features for end-users, for no good reason.

  17. macrumors 65816

    Sep 14, 2009
    A general search engine may not make sense, however,
    It may make sense for Apple to develop a search engine specific to extend their mapping strategy to reduce it's reliance on Google maps.

    (I'm not sure what they had in mind with acquisition of Placebase, but I think Location based search/ advertising / mobility, kinda goes hand in hand)
  18. macrumors newbie

    Feb 11, 2010
    Makes me think the reason the Nexus One got multitouch is Google is probably paying for it.
  19. macrumors 68000


    May 20, 2002
    middle earth
    I agree, there is a lot of good reasons for Apple to move to a different maps engine.
  20. macrumors 68040


    Mar 4, 2006
    Kent, UK - the 'Garden of England'.
    I personally hope this is true, I still find Google to be the fastest and most accurate search engine and like having it integrated into my iPhone.

    Can you seriously imagine an Apple search engine? absolutely blows (I've been hanging around you yanks too long), it's slow, buggy, and did I mention slow? Spotlight search is pretty good but that's built on pre-existing stuff, it's not like you could base a search engine on it. No, I'm pretty sure it'd be rubbish... I hope they continue to concentrate on the things they're good at.
  21. macrumors 68000


    Jun 14, 2003

    So for maps Apple is using Placebase's Pushpin in Aperture now. Not sure if they were in iPhoto.
  22. Administrator

    Doctor Q

    Staff Member

    Sep 19, 2002
    Apple has long been a rival with Microsoft but still able to make deals in some areas. Apple can work with Google for search while being a rival in other areas.
  23. macrumors 6502


    Jun 29, 2007
    I hope so as well. Both companies have some great offerings. I've been vocal about fears of Google privacy invasion in the past, but I've gotten over them, and Apple and Google are my two favorite companies in terms of offering products and services that impact my life daily.

    Good thought. Hadn't heard that one before.
  24. macrumors 6502


    Jun 29, 2007
    iPhoto appears to be Google Maps to me just now. Copyright notice mentions a few other companies, but Placebase isn't one of them.
  25. jo0
    macrumors regular

    Nov 25, 2009
    Seattle, WA

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