Last week, the
Wall Street Journal
broke the news that
) were in talks to deepen their mobile-services relationship,
The partnership is mutually beneficial because it allows Yahoo to
improve its presence in mobile, and it allows Apple to distance
itself from rival
), said Sterne Agee analyst Shaw Wu in a report. Additionally,
Yahoo data already powers native iOS stock and weather apps on
iPhones and iPads.
The Yahoo-powered iOS native weather app, as seen on this
While this is a positive for Yahoo as it looks to strengthen its
presence in mobile, this also signals Apple's efforts in lessening
its dependence on Google, who has arguably emerged as its biggest
Yahoo has somewhat become the "Switzerland" of Internet companies
and an ideal partner for Apple as it isn't in the mobile-devices
business and doesn't own a mobile device OS, popular Web browser,
or social network.
But while an Apple-Yahoo alliance makes sense, provided Yahoo will
be able to deliver quality content for Apple, the Cupertino,
California-based company will not be severing its ties with Google
anytime soon, Dr. Richard Windsor, founder of the mobile-focused
and a former tech analyst at Nomura, tells Minyanville.
Windsor acknowledges that Google will be hurt if Yahoo and Apple
advance their relationship in the short run.
"I would estimate around 50% of Google's mobile advertising revenue
is coming from iOS. Also, at the moment, iOS customers are the most
valuable ones because they have the most disposable income. So if
Apple was to boot Google, short term, Google would take a big hit,"
However, he says that Apple will not be dropping Google Search
anytime soon, given the popularity of the product, which is a
relief for Google since search accounts for an outsized portion of
"An extreme case might be that Apple will include Yahoo's search
engine as the default, but then you can always download Google
search from the app store," he shares, highlighting that Apple
would have learned its lesson from dropping Google Maps and
introducing its own native mapping app.
Apple will be cautious, because it will worry that "if it doesn't
make available Google Search anymore on its devices, maybe some
users will go: "To hell with this, I'm not using iOS anymore. And
they go buy a
) Galaxy S4. It's a very, very dangerous game," he adds.
"I think what they will do is they will say: 'We think Yahoo Search
is the best, and we're going to optimize it to be absolutely
fantastic on iOS devices, but if you really want Google, you can
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