I'm not talking about the AppStore. I'm talking about a native app that comes with the phone. The original maps app and original youtube app had no Google branding. Fast forward 5 years with Google being one of Apple's major competitors. It's nuts to think Apple would allow a stock app with Google's branding all over it. ...
I think you're right about YouTube, but the original Maps app always had Google branding. From a July 2007 iPhone review:
This Macquarie analyst has it completely wrong. This is not how Traffic Acquisition costs work at Google. It is not that Google pays Apple some percentage of the revenue that accrues because of Apple. Google's entire Traffic Acquisition costs consists of 2 components - One large annual payment to Apple, and another sizable annual payment to the Mozilla Foundation. And a few insignificant payments to a few other ecosystems. None of these payments are related to actual revenue figures.
Google's payment to Apple and Mozilla to be their default search engine is less than 10% of their TAC.
If you look at Google's older reports, the TAC actually was quite insignificant till the iPhone came along. The iPhone was the first time Google had to pay for Traffic Acquisition - and that is when Google decided to take on Apple, and compete against the iPhone with Android.
Perhaps you meant something else. TAC has been going down as a percentage of revenues, for years. For example, longtime pre-iPhone and now:
Google 2Q2006 : "TAC totaled $785 million, or 32% of advertising revenues."
Google 3Q2012 : "TAC totaled $2.77 billion, or 26% of advertising revenues."
On the contrary, the only player that no one would go up against back then was RIM. Way too embedded with enterprises, and not into consumers yet. Blackberry users were (and still are) NOT a meaningful internet search / ad source.
To those of us developing on smartphones at the time, Android was CLEARLY targeted at Windows Mobile:
- Its purpose was to prevent Microsoft from locking Google out of the mobile market.
- It was planned for two target product types, one touch and one not, just like WinMo.
- The first development device was a slight variation of a known WinMo phone.
The widespread mistaken idea of targeting Blackberry all started from the blog of a young intern who, like many young people, had no knowledge of the smartphone market prior to 2007. Later, he posted a corrective note, saying that nobody should listen to his explanations because they were wrong.
Edited by KDarling - 12/17/12 at 6:41am