iOS to provide 2% of Google's total revenue in 2012, analyst says

Posted:
in General Discussion edited January 2014
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.

Comments

  • Reply 1 of 15
    tallest skiltallest skil Posts: 43,388member


    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.

  • Reply 2 of 15
    solipsismxsolipsismx Posts: 19,566member
    According to this site iOS accounted for 62.7% of mobile market share, while mobile platforms accounted for 7.8% of the total market share. That's 4.9% of the total market share. So does that mean that Google makes money off desktop OS users than it does on mobile OS users?
  • Reply 3 of 15
    aaarrrggghaaarrrgggh Posts: 1,609member
    solipsismx wrote: »
    According to this site iOS accounted for 62.7% of mobile market share, while mobile platforms accounted for 7.8% of the total market share. That's 4.9% of the total market share. So does that mean that Google makes money off desktop OS users than it does on mobile OS users?

    It is easier to display more ads to desktop users. I would think the ads displayed to mobile users are more valuable though.
  • Reply 4 of 15
    palex19palex19 Posts: 18member


    2% is not that much actually. 


    Google don't have to worry about IOS map update.....

  • Reply 5 of 15
    patranuspatranus Posts: 366member

    Quote:

    Originally Posted by aaarrrgggh View Post





    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.

  • Reply 6 of 15
    dmarcootdmarcoot Posts: 191member


    Originally Posted by Palex19 View Post

    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?

  • Reply 7 of 15

    Quote:

    Originally Posted by dmarcoot View Post


    Originally Posted by Palex19 View Post

    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.

  • Reply 8 of 15
    sleepy3sleepy3 Posts: 244member

    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)

  • Reply 9 of 15
    This site and many of the sources used for articles provide more useless and inaccurate info than I ever thought possible. Must actually have editors using Android to do their jobs. The Maps app referred to in the article that comes on the iPhone is not by Google. Never was. Google can show off all the new stuff they want, Apple is a major source of revenue and Apple is cutting them loose as fast as they can. Google is just hoping like crazy they can trick people into spending as much on them in place of Apple. Let's see Google focus on making its own 'so damn awesome' Android base take up the slack. I hear nothing but crickets.
  • Reply 10 of 15
    djrumpydjrumpy Posts: 1,116member


    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.

  • Reply 11 of 15
    solipsismxsolipsismx Posts: 19,566member
    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.

    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.

    djrumpy wrote: »
    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.
    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.
  • Reply 12 of 15
    anonymouseanonymouse Posts: 6,897member

    Quote:

    Originally Posted by DJRumpy View Post


    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.

  • Reply 13 of 15
    anantksundaramanantksundaram Posts: 20,407member

    Quote:

    Originally Posted by Palex19 View Post


    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...."

  • Reply 14 of 15
    anantksundaramanantksundaram Posts: 20,407member

    Quote:

    Originally Posted by DJRumpy View Post


    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!

  • Reply 15 of 15
    e_veritase_veritas Posts: 248member

    Quote:

    Originally Posted by dmarcoot View Post


    Originally Posted by Palex19 View Post

    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???

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