What’s Cooking Up Between Google And Apple?

  • Oct 02, 2018 AEST
  • Team Kalkine
What’s Cooking Up Between Google And Apple?

Competition for space: Google is reportedly paying huge amount of $9 billion to remain Apple's default search engine for iPhone's Safari browser on iOS. The company had paid in 2013 and 2014, the sum of $1 billion and Apple had taken around $3 billion in terms of Google’s default engine. As per Goldman Sachs analyst Rod Hall, which in a Business Insider report had claimed that this this number could rise up to $12 billion in 2019. Particularly, searches that users perform on Siri and/ or within the Safari browser, are being considered for the revenue generation. Meanwhile, as Apple makes Google as the default search engine to increase the volume through Safari on iOS, the company also uses Bing in multiple other places such as searching the web through Siri. Apple has been selling that services for the growth of the company, as sales of its hardware gets the demand. There are lot of spaces for which the users are willing to pay the monthly fee in order to get access to more storage, though the free iCloud storage tier still remains at about 5GB.

Search market is evolving too rapidly in the mobile area: From the past few years, search market is evolving and growing too rapidly in the mobile area and Google is dominant more on “mobile web” than on the laptops. On one hand we see Google grabbing a higher market share, on the other, Apple is doing better in terms of margins. Google thus needs to maintain dominance in browser based mobile search platform as well while the competition is heightened up at the moment. The landscape in tech-driven mobile market is changing quite rapidly.  

Growth for social network’s rival service: Recently, the social network’s rival service had threatened Google’s dominant position in search as the people changed their aptitude and started spending their time online to smartphone apps like WhatsApp and Instagram, digital services owned by Facebook. Its rival Instant Articles product offered publishers an alternative to load mobile stories quickly and sell more ads. However, from past one year after the social network Facebook announced that it would downplay the prominence of articles in people’s news feeds, many media organizations pulled back from the social network to focus on Google’s digital tool. That has allowed the search company to reinforce their position as a key driver for mobile traffic for sites worldwide, as per the industry experts. Meanwhile, Google had worked hard to reinforce this position on the mobile web. After initially targeting news organizations, Google had started to roll out AMP to the wider mobile internet, which allows the e-commerce players like eBay and social media companies like Twitter to similarly speed up, and drive traffic to, their mobile websites. Additionally, that has encouraged hundreds of coders, internet activists and publishers earlier this year to sign an open letter to Google, and raise hackles that the mobile technology had increased the company’s online dominance.

It is to be seen how Google takes charge in maintaining its position across the market.

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