Jay Yarow, regarding a report by analyst Ben Schacter claiming that a version of Chrome for iOS is imminent:
Google is currently paying Apple an estimated 50%-60% revenueshare for searches done through the Safari search box, saysSchacter. So, if there is $1 billion in gross search revenue fromiPads, iPhones, and iPod Touches, Apple gets $600 million, Googleonly gets $400 million. By cutting out Safari, and owning all thesearches, Google gets to keep all of the revenue it generates.
I wonder if this is true. I know that Apple gets money from Google for searches conducted through Safari’s search field, but is it feasible for it to be a revenue share? How would Apple verify the prices paid by the advertisers?
The catch for Google is that Apple doesn’t allow third-partyapplications like Chrome to act as defaults. So, if you click on alink in an email it will take you mobile Safari by default insteadof Chrome.
However, as Schacter says, this could be the second wave ofbrowser wars. Microsoft was hammered in the late nineties by thegovernment for making IE the default browser on Windows, and thusmarginalizing the then dominant Netscape browser. If Apple isgoing to follow the same playbook, the government too might followthe same playbook and come after Apple. And don’t forget, Googlehas been active in D.C. making friends, while Apple has haslargely given D.C. a cold shoulder.