Google needs Apple much more than Apple needs Google. In fact, what would Apple lose if Google dropped out of the business of making smartphone apps for iOS? A few good apps on the App Store. What would Google lose if the company had no presence and no apps on iPhones or iPads? Money.
It’s been said that Google makes more revenue and profits from iPhone and iPad usage than it does on Android smartphones and tablets, and Apple doesn’t make it easy, either. Apple’s Pages, Numbers, and Keynote apps are better than similar offerings on iOS from Google. Apple Maps may have suffered the first year or so after Apple dumped Google for maps, but there seems to be more parity these days, and Apple’s maps app is used far more than Google’s on iOS devices. Apple’s iAds compete with Google for advertising on iPhone and iPad (a good way for Apple to provide a revenue stream for app developers).
There’s another more glaring disparity between Apple and Google from a revenue and profit perspective, one of the key ingredients in the reason why both are in business, and why they compete. More than half of Apple’s enormous revenue and profits come from iPhone and iPad, while a small percentage of Google’s advertising revenue, and somewhat more minuscule profits, come from the great masses of Android devices owners.
In other words, Apple makes tremendous profits from iPhone and iPad while Google makes most of its revenue and profits from traditional advertising; desktop and notebook search engine results, a process which doesn’t translate as well on mobile platforms.
This is a scenario which won’t take place, of course, but think of what would happen if Google abandoned Android? That’s right. No more Google apps on Android, no more Google Play Store, no more official Android OS, no more Google Nexus Whatever models. Cellphone and tablet OEMs would be able to use Android however they wish, which would result in more OS fragmentation in the market. Without the financial losses from Android, that scenario would leave Google free to develop a stronger and more profitable suite of apps and an improved and more effective mobile advertising business on the one platform which is profitable. Apple’s iOS.
For all the talk of Google being a technology powerhouse, the company has yet to translate tens of billions spent of R&D, Android, Chrome, Google Glass, self-driving cars, or any other project into a profitable revenue stream of substance, either for itself or any manufacturer beyond Samsung. Compare that effort of anemic results to Apple’s line of profitable products– Mac, iPhone, iPad, iTunes Music Store, iTunes App Store, Mac App Store, Apple retail stores, Apple online stores, even Apple TV puts competitors to shame.
Technology companies are in business to make money; profits, or shareholder value; preferably both. Apple does both better than any other company on planet earth. Google’s successful business ventures are limited to advertising, making the company little more than a 21st century digital newspaper– dispensing pieces of information while making money on advertising space, and that’s despite desperate attempts in recent years to diversify to other platforms and other products.