The tech industry is abuzz with gossip that Apple is seriously pissed at Google’s release of its own smartphone, the Nexus One. These two former close allies have gotten on each other’s nerves more and more and the latest blow was Google’s act of releasing its own phone. Apple considers this a direct challenge to its iPhone dominance. While Apple didn’t bat an eyelash when Google made the Android operating systems open source and freely available to all smart phone makers, the Cupertino-based company is no longer happy with Google’s foray into the smart phone business. On the same day that Google launched its smart phone, Apple retaliated by announcing it has acquired Quattro Wireless, the leading company for mobile phone advertising! This is an obvious slap to Google, Apple is evidently saying “we are getting ready to challenge your advertising business.” Apple has sold millions of its iPhone and iPod Touch (iTouch) models and it can obviously use Quattro Wireless to sell ad space effectively without Google’s support.
Pundits are saying Apple has been in negotiation with Microsoft for weeks before the release of Nexus One. Analysts are already predicting it will be a better deal for Apple to dump Google from its popular iPhone. Microsoft can offer them much more money should Apple decide to have Bing as its default search engine. If Apple accepts Microsoft’s offer, Google will seriously get hurt. Back when Apple and Google were in friendlier terms, Google landed the sweet deal of being the iPhone’s default search engine and thus garnered search query data from mobile users. The ad giant also had free access to the GPS locations of iPhone users which is extremely valuable for advertising purposes.
Last year, Apple told Google they want to stop sharing this GPS data with them. It might have worsened relations between some more. Apple has realized such GPS location data of its iPhone users are very important for more effective targeted ad campaigns. Google has taken 65% of the world’s online ad business but this domination is being threatened by people’s eager usage of smart phones like the iPhone to access the internet. They know that mobile devices are going to be the future bigger platform for advertising and if ever Apple drops them from the iPhone, they will lose millions of eyeballs. The Google Nexus One superphone is far from building a solid base of customers. Google needs Apple more than Apple needs it. Who wants to bet, Bing or Google for the iPhone 4G?