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Munster: 2% of Google's profits come from the Apple iPhone and Apple iPad

Posted: , by Alan F.

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Munster: 2% of Google's profits come from the Apple iPhone and Apple iPad
With WWDC coming next week, there is a chance that we will hear Apple announce that its own mapping application will replace Google Maps on iOS. According to Piper Jaffray analyst Gene Munster this action will not have any affect on Google's take from iOS. In fact, Munster calculates that 2% of Google's profits come from the Apple iPhone and Apple iPad thanks to Google Search.

Even though Google Maps won't be the mapping application for iOS out of the box, Google said at a press briefing on Wdnesday that it will still offer an iOS version of Google Maps as an app. Those used to it will still be able to download it from the Apps Store. Apple users are pretty much creatures of habit, so you can probably expect many of them to opt for the Google Maps app. Munster expects such an app from Google to overtake its other free iOS apps like Search, Gmail, Google+ and Translate.
"We estimate Google will generate gross mobile revenue of ~$4.5 billion in 2012 with approximately $500 million coming from display and $4 billion from search. We believe iOS is likely to be the biggest or close to biggest portion of mobile search revenue. Assuming the iOS generates around 40% of total mobile search revenue ($1.6 billion) and Google keeps half after TAC, iOS would generate about 2% of Google's net revenue in 2012. We do not expect any material impact to these assumptions if Google Maps were to no longer be the default mapping application on iOS."-Piper Jaffray analyst Gene Munster
source: Fortune via TUAW

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posted on 07 Jun 2012, 19:33 4

1. Non_Sequitur (Posts: 1111; Member since: 16 Mar 2012)

20 bucks Apple won't approve the app.

posted on 07 Jun 2012, 23:43

2. anywherehome (Posts: 971; Member since: 13 Dec 2011)

Dear Google, do not support iOS devices.....without Google iOS devices are almost nothing and Google will survive without them ... their very narrow portfolio (just iPhone + iPad) is very risky and can end in a few years....it can be just temporary fashion....iOS is copy of Android and therefore iOS will never be a technological leader:
http://goo gl/04pud
so why to buy iOS device in a few years? For me, why to buy iOS now?
http://goo gl/XxQ5b

posted on 08 Jun 2012, 00:42

3. robocopvn (Posts: 448; Member since: 10 Mar 2010)

I like Apple simple and pretty design, but I never love their software and eco system :D. Especially I hate how they act in the business. I will never forget when Mr Jobs claim that Iphone 4 is bug-free with their antene, and this is because of the user holding Iphone4 in the wrong way.

posted on 08 Jun 2012, 06:28 1

4. Slammer (Posts: 1515; Member since: 03 Jun 2010)

2% is not a huge profit margin. It's basically supplemental. I have always contended that if Apple wants to remain proprietary to their ecosystem, Google should cease offering their services through Apple. Google would stand to make better profits off those that switch over to them for their full services.

John B.

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