Always on the list is Yahoo, the spoiled, wayward, rich little search engine that can’t. Actually, Yahoo is a bargain, based upon all the assets it owns. Now we hear that Yahoo CEO Marissa Mayer wants Apple to use Yahoo instead of Google for search.
Snarkiness aside, it’s actually a good idea.
Marissa & Timmy, Sitting In A Tree
Why is Google so upset with Apple and the iPhone? Because Google figured out three things right after the iPhone launched in 2007.
First, they needed to scrap their own Android phone project, start over, and build something that resembled the future. An iPhone clone.
Second, Google knew that the iPhone would eventually have applications, and app usage would soar, and that would mean less search in Google, and that would mean less revenue for Google.
Got it? It’s math.
Finally, desperate Google knew it would need to tread carefully with Android but the only way to make a dent in Apple’s revenue and profit goldmine was to give Android away for free.
What does all that have to do with Yahoo wanting to replace Google as Apple’s search engine of choice? It’s that whole ‘the enemy of my enemy is my friend‘ thing.
Yahoo needs the business. Apple needs to sting Google for becoming a thieving, unscrupulous, well, thief. The majority of Google’s mobile revenue comes from iOS– iPhone and iPad. Move Google aside, Yahoo’s chief yahoo says, and Apple gets more revenue and profit, Google gets a big wad of hurt as mobile revenue and profits take a quick dive, and Yahoo gets a new friend.
See? It’s Win, Lose, Win for everyone.
The Apple Subsidy
Apple is subsidizing Google’s mobile device revenue and profit growth and that needs to stop. Apple’s choices are slim. Use Microsoft’s Bing instead of Google. Use Yahoo instead of Google. Or, build their own search engine business.
Therein lies the rub and why it’s better to bonk Google in public than build your own search engine thingy.
Google’s advertising business is going downhill. It’s a one trick pony and the pony is wheezing up a fur ball (tail ball?) of financial bad news. Profitable? Yes. Growing? Not so much. Once investors realize that Google hasn’t been able to diversify like Apple, well, let’s just say, the arrows on the charts will be red and pointing toward the shade where Dolly Parton’s toes rest.