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Apple’s New Moves Will Reduce Google’s Revenue

It seems that the relationship between two tech giants, Apple and Google, have been deteriorating recently. Specifically, ever since the launch of Android, both are seen somewhat as rivals. And this rivalry is about to get serious as Apple gears up to launch a mapping service of its own for iOS devices. This would be a huge step towards divorcing Google Maps from iOS.


Although Google has thrown its full weight behind the Android platform, the fact remains that iOS devices are a lot more lucrative for the company. How so? Well, by offering Google as default search engine in Safari and letting iOS devices come equipped with Google Maps, Google charges Apple a whopping sum. This sum is roughly equivalent to four times the revenue Google earns from its own Android platform.

This pretty much shows how significant iOS platform is for Google. However, things are about to change for Google. Apple has been trying to distance itself from the search giant and by venturing to create its own maps, Apple has taken the first huge step. This step will essentially cut a huge hole in the revenue of Google.

Nonetheless, it seems that Google is also prepping up to counter such moves by opening up new revenue streams. For instance, Google is now charging developers for using API of Google Maps, something which has been free for everyone except Apple until now. We can expect Google to start charging on a whole lot of other services too. And who knows  Apple may eventually ditch Google search for some other search engine.

Source: Forbes

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