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Wise Move by Apple Inc.

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Apple & Google, the two epic brand names of Technology industry, are also been popular for their fierce rivalry.  Though they haven’t clashed publically but it’s known to all that Apple generates it’s most of the revenue from Hardware sales, whist Google relies mostly on their sales of Advertisements.

The companies haven’t felt shy at all to step upon the toes of each other. Google launched Android to compete against the Apple’s iOS. And also they expanded their reach by creating their own iOS apps. Apple haven’t take the loss and created many rival apps like Apple Maps, also they ditched Google from being their default search engine.

By far the war has been limited itself to small stabs until the biggest step that Apple has taken recently. Apple’s recent decision is to create ad-Blocking extensions for Safari on iOS9. This brings the possibility of Google’s ‘full stop’ upon the revenue of  ads on iOS devices.

Back in the month of June, Apple CEO Tim Cook has accused Google and other web companies of “gobbling up everything they can learn about you and trying to monetize it” with targeted ads. He warned that people shouldn’t ever “make trade-offs between privacy and security,” and that “free” services actually comes at “a very high cost.”

The declaration gave Apple a reason to inflect services of Google out of its system. That is why it takes a backup of user content to iCloud, pushes users to use Apple Maps on CarPlay, and now enables ad-blocking extensions on Safari.

But as benevolent as Apple’s moves seems, they can also be considered anti-competitive. Apple uses a closed software and hardware system to lock in users, so booting Google out of it makes perfect business sense. Apple takes a 30% of sales of paid ad blockers, and it stated that it doesn’t plan to block ads within apps. This means that articles published within the Apple News app will feature ads which generate iAd revenues, whilst the mobile version on Safari might get its ads cut off which seems a strategy which could be considered anti-competitive.

Reportedly Google generated 75% of its mobile ad revenues from iOS last year. That’s equivalent to 14% of its 2014 revenue. Google would not be the only company hurt by Apple’s ruthless move – any company which relies on display ads for revenue could be affected.

The maker of Adblock Plus on PCs, Eyeo, recently launched a mobile browser which blocks ads without additional extensions. Eyeo claims that mobile ads can consume nearly a fourth of a device’s battery, cause pages to load more slowly & increases data costs, and expose users to Viruses. Whatsoever, ad blockers are getting popular too. Reportedly PageFair estimates the total monthly active ad blocker users worldwide, which is been skyrocketed from 20 million in April 2009 to almost 200 million in June 2015.

Wise move or not, But surely Apple has stated wisely that he is here to win all the battles and this move could make the whole battleground bow to him.

 

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