iPhone 5 vs Google

Google slides off iPhone 5 
Apple makes gambit by nixing Google Maps, YouTube

Sept. 20, 2012, 6:11 p.m. EDT

Google loses some traction with iPhone 5

Analysis: Apple’s exclusion of Google Maps, YouTube could backfire

By Benjamin Pimentel, MarketWatch

SAN FRANCISCO (MarketWatch) — Friday’s high-profile launch of Apple’s iPhone 5 raises concerns about the effect the new device will have on Google Inc., which appears to be losing traction in the ecosystem created by the popular smartphone.

Apple

Apple Maps on iPhone 5

In fact, Apple AAPL -0.48% is seen trying to shut its rival out of the iPhone ecosystem, highlighted by the decision to replace Google Maps with Apple’s own mapping application, as well as not to have the YouTube app preloaded on the iPhone 5.

Google GOOG +0.08% has emerged as one of Apple’s main competitors in mobile computing, as its Android operating system has overtaken Apple’s iOS has the top platform for smartphones in the world.

Many existing iPhone users have come across the changes already, after Apple made iOS 6, the latest version of its mobile operating system, available for download Wednesday. Professional reviewers had noted some weaknesses in Apple’s mapping application, which has replaced Google Maps on the updated platform.

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Apple customers were a little more harsh. “Terrible maps — when is Google Maps coming back?” asked one user on an Apple customer-support discussion board Thursday morning.

“The reviews I’ve seen reinforce the view that Google’s search development on the mapping side is not easily replicated,” Susquehanna analyst Herman Leung told MarketWatch.

AllThingsD’s Walt Mossberg cited the map feature as the “biggest drawback” in his review of the iPhone 5. See: Walt Mossberg’s review of the iPhone 5.

Leung noted the “fear” that the new iPhone could have a serious impact on Google. But that fear may be overstated, as YouTube is the No. 1 free application on the Apple app store.

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“I think the world will realize that ... customers will vote by usage,” Leung said. “What we’re seeing is people want YouTube. People miss Google maps.”

Google, which is dominant in the search market, also has the most widely used smartphone operating system in the Android, used in 61% of mobile phones as of the second quarter, according to IDC.

Apple’s iOS was No. 2, with 21%.

The two companies are seen dominating the mobile market, a view that has boosted their shares. Apple’s shares have risen 19% over the last three months, while Google has gained 26%.

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The other iPhone 5 circus

Before the carnival atmosphere of the in-store launch came the spectacle inside and outside the venue in San Francisco as Apple unveiled details of the iPhone 5 earlier this month.

Their competition was recently underscored by Apple’s victory over Samsung in a major legal battle. Samsung makes smartphones and tablets based on Google’s Android.

In a note before the launch of the iPhone 5, Macquarie Capital analyst Ben Schachter speculated that the relationship between Apple and Google “will continue to deteriorate.”

“Apple and Google continue to become less integrated, and we think changes to search are also inevitable, even if not with iPhone 5 and iOS 6,” he added.

But Leung suggested that Apple has to move cautiously, based on reactions to its new operating system’s mapping capabilities. “I think this could be a lesson,” he said. “It could reinforce the value of Google. If the map product is not good right now, and people are complaining about it, can you imagine if they replace the search functionality?”

“I still think Google has a far superior search experience,” he added. “When you have a far better search experience, users know it, and Apple knows it.”

Still, Google may be vulnerable as Apple seeks ways to disengage from its technology.

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Roger Kay of Endpoint Technologies Associates said Apple’s decision to have its own mapping app preloaded on the iPhone 5 could turn out to be a smart move, since “people tend to [stick with] the defaults.”

And despite bad reviews of the iPhone 5 mapping app, Kay noted that Apple can keep working on it. “After all, software can be fixed,” he said.

Kay also said Apple could do more with the Siri voice feature, citing speculation by another industry analyst, Tim Bajarin of Creative Strategies Inc. He said Apple could integrate Siri into the databases of other companies, such as Yelp YELP +2.33%  or Open Table OPEN -2.86% , that are focused on the dominant searches on the Web, which, he said, are mainly related to travel and entertainment.

That way, Kay continued, Apple could develop its own search capabilities independent of Google’s. “Google,” he said, “could be vulnerable here.” 

Benjamin Pimentel is a MarketWatch reporter based in San Francisco.
GOOGLE INC COM USD0.001 CL'A' (GOOG)
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 20/09/2012 22:00

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698,70 USD 
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 20/09/2012 22:00