iOS to provide 2% of Google's total revenue in 2012, analyst says
Devices running Apple's iOS, the main competition for Google's Android OS, are expected to power the largest chunk of the search giant's mobile revenue and will represent two percent of the company's total revenue for 2012.
Senior Analyst Gene Munster at Piper Jaffray said in a note to investors on Wednesday that he estimates Google will take in some $4.5 billion in mobile revenue over the year, $500 million from display and $4 billion from search, and Apple's iOS platform is set to be one of the biggest contributors.
Munster calculates that if iOS accounts for 40 percent of Google's mobile profits, which equates to $1.6 billion, the net after TAC would be half that or two percent of the company's total revenue. The estimate is conservative compared to a March report that found 80 percent of Google's mobile revenue came from iOS while Android only accounted for 20 percent.
The analyst also notes that Apple's rumored switch away from the iOS Google Maps app to a proprietary mapping solution is unlikely to affect mobile revenues for either company. The change would further minimize Google's presence in iOS as its Maps app came pre-installed on all iPhones since the handset was first released in 2007.
Interestingly, Munster believes that Google Maps will still be available through the iTunes App Store, which is also home to other products like Google+, Gmail and Google Search. It remains unclear whether the app will be found to replicate features already offered by iOS which would give Apple cause to reject it under the App Store's guidelines.
Google Maps could be the tip of the iceberg, however, as the analyst believes that an iOS version of the Chrome web browser is in the works as Google tries to enlarge its presence on Apple's popular devices.
Senior Analyst Gene Munster at Piper Jaffray said in a note to investors on Wednesday that he estimates Google will take in some $4.5 billion in mobile revenue over the year, $500 million from display and $4 billion from search, and Apple's iOS platform is set to be one of the biggest contributors.
Munster calculates that if iOS accounts for 40 percent of Google's mobile profits, which equates to $1.6 billion, the net after TAC would be half that or two percent of the company's total revenue. The estimate is conservative compared to a March report that found 80 percent of Google's mobile revenue came from iOS while Android only accounted for 20 percent.
The analyst also notes that Apple's rumored switch away from the iOS Google Maps app to a proprietary mapping solution is unlikely to affect mobile revenues for either company. The change would further minimize Google's presence in iOS as its Maps app came pre-installed on all iPhones since the handset was first released in 2007.
Interestingly, Munster believes that Google Maps will still be available through the iTunes App Store, which is also home to other products like Google+, Gmail and Google Search. It remains unclear whether the app will be found to replicate features already offered by iOS which would give Apple cause to reject it under the App Store's guidelines.
Google Maps could be the tip of the iceberg, however, as the analyst believes that an iOS version of the Chrome web browser is in the works as Google tries to enlarge its presence on Apple's popular devices.
Comments
Cutting as much of that as possible is probably second on Apple's list of priorities involving other companies.
"First is cutting Samsung profits, right?"
Yes, probably.
It is easier to display more ads to desktop users. I would think the ads displayed to mobile users are more valuable though.
2% is not that much actually.
Google don't have to worry about IOS map update.....
Quote:
Originally Posted by aaarrrgggh
It is easier to display more ads to desktop users. I would think the ads displayed to mobile users are more valuable though.
Which is why everyone is down on Facebook and Google "needed" to launch Android.
Originally Posted by Palex19
2% is not that much actually.
Google don't have to worry about IOS map update.....
Which explains the press conference where Google showed their new half baked 3d maps that crashed 3x on on a iPad a week before Apple did their own and kicked them to the curb. Why? What was there to gain from showing a product that will not be the default on your main competitors platform before it was ready if you were not sh*ting bricks about Apple's home brew potential?
Quote:
Originally Posted by dmarcoot
Originally Posted by Palex19
2% is not that much actually.
Google don't have to worry about IOS map update.....
Which explains the press conference where Google showed their new half baked 3d maps that crashed 3x on on a iPad a week before Apple did their own and kicked them to the curb. Why? What was there to gain from showing a product that will not be the default on your main competitors platform before it was ready if you were not sh*ting bricks about Apple's home brew potential?
If Google didn't do that and Apple came out with it next week all of a sudden Google would be copying Apple right?
The reason they showed their maps tech in detail was to show that there is no way they simply decided to do this and get a fleet of planes in a reactionary way. They were working on it, and probably realized their solution wouldn't be fully available in time, but they wanted the world to know that the tech exists for them.
Quote:
If Google didn't do that and Apple came out with it next week all of a sudden Google would be copying Apple right?
The reason they showed their maps tech in detail was to show that there is no way they simply decided to do this and get a fleet of planes in a reactionary way. They were working on it, and probably realized their solution wouldn't be fully available in time, but they wanted the world to know that the tech exists for them.
You must be new here. Whether or not they had it in the making for years, as they obviously did, Apple fans will say that they stole it from Apple. Don't you know Apple invented mapping?
I think Google actually wouldn't mind losing Apple cause
1. Its only 2%
2. They are now free to bring more of what they develop into the Android app and market it as exclusive to that platform since obviously Apple will block Google Maps from iOS once they relase imaps.
Wonder what's gonna happen when Apple releases itube, and people say "Look at google, youtube is an obvious ripoff)
Frankly I think the '3d' maps are a gimmick. I've never used the satelite view of my maps app. I find the 2-D flat view easier to navigate with for simple directions.
As far as Google goes, they've already lost any trust I had for them. I use my old gmail account for a spam bin, emptied my calendar, and I never log into tertiary accounts like YouTube, G+, etc, it to avoid tracking in addition to the cookie and tracking blockers I have in place.
The only thing I do use from Google is the search, and as soon as something decent comes along, I'll drop them in a New York minute.
That's ridiculous! No one in their right mind would think Google had just wiped up a new mapping app and back end just as no one in their right mind will think Apple wiped their's up next week to compete with Google. Apple has been buying mapping companies for years now.
I can't recall trying to get the jump on Apple with a half baked product ever working out for that company. Apple has a formal event that will make it across the globe almost instantly, even into non-tech areas, and they now have Google's event as a template to make their event even better. They now have nearly a week to refine their own presentation.
People were still going to associate Google with mapping just as they have for years but by making yourself yourself look weak and giving your competitor the chance to look better you are more likely to lose in the end.
"Better to remain silent and be thought a fool than to speak out and remove all doubt."
Perhaps not a completely apt statement but I'm sure you can see how it could be made to fit. Apple hasn't gotten to their current position in anything with a "me first" attitude. It's exactly the opposite. A few refined features that they build off of. I wish more companies would copy this key philosophy.
I tend to agree. While it would be nice to see a city laid out like a scale model of Rome from 2,000 years ago on the History Channel I don't see how this will be overly helpful. I was told (waiting to watch the video) that Google's new app will cache navigation data using the DB feature in HTML5 for a particular set of directions. That's a great feature and i hope Apple includes it. It's been on my Maps wish list for awhile now. I have Tom Tom, which is great, but have 1.6GB for maps for a single county is a waste for the casual user.
Quote:
Originally Posted by DJRumpy
Frankly I think the '3d' maps are a gimmick. I've never used the satelite view of my maps app. I find the 2-D flat view easier to navigate with for simple directions. ...
People's brains are wired differently. Some people can't make any sense of 2D street maps, for others it's clear as day.
Quote:
Originally Posted by Palex19
2% is not that much actually.
Google don't have to worry about IOS map update.....
Heh heh. The question is, where will it be 3 years from now?
Yours is the kind of thinking that a company up in Canada had, in January 2008: "2% is not that much actually; RIMM doesn't have to worry about iPhone's share...."
Quote:
Originally Posted by DJRumpy
Frankly I think the '3d' maps are a gimmick. I've never used the satelite view of my maps app.
Completely agree. My new car has a gorgeous 3D map in its navigation system -- it's absolutely lovely looking to have on (esp. in cities, where it even shows you actual building images in 3D). The kids love it. But it's totally useless if I want to see what street I am on, or what's is coming up. I have to switch to 2D view to get any actual sense of where I am or going!
Quote:
Originally Posted by dmarcoot
Originally Posted by Palex19
2% is not that much actually.
Google don't have to worry about IOS map update.....
Which explains the press conference where Google showed their new half baked 3d maps that crashed 3x on on a iPad a week before Apple did their own and kicked them to the curb. Why? What was there to gain from showing a product that will not be the default on your main competitors platform before it was ready if you were not sh*ting bricks about Apple's home brew potential?
Google Earth crashed ONCE and the presenter wasn't able to launch it the first couple of attempts because the old instance was still running. I don't think it is fair to say it crashed 3 times. Besides, even Steve Job's keynote presentation of the iPhone 4 wasn't without it's own hiccups. The phone couldn't even get a signal at one point. Were you screaming "half baked" then as well???