While looking for evidence that Froyo is not the only one with wireless app syncing (iPhone OS 4 has the same capability for Enterprise users), I started to pay more attention to iAd - the iPhone OS's "7th Pole". But it wasn't 'til yesterday that I read John Batelle's post that everything started to make sense.
I was really baffled by Google's blatant attack at IO last week and I really didn't understand why. Now I do. See, the way that Google has managed to get 60+ devices on 59 different carriers is simple: they split search revenue with the carrier. Now, instead of just "selling" just another smartphone, they can sell an Android phone that brings in income as long as the user is searching. Brilliant, right?
Yesterday, Google started talking about their revenue share on Adsense. And at IO they gave a good portion of the second keynote on mobile ads and even gave developers $100 in adsense credits. Financial transparency and ad advocacy. From Google? King of online advertising? How odd, I thought.
And then it hit me... they're concerned about iAd. Not that iAds will be technically better than what Admob has to offer, but what iAds can do to Android. See, from where I'm standing, I can see Apple offering Verizon, T-Mobile or any other carrier for that matter, a cut of iAd's revenue in the same way that Google is doing with Android. Not only can Apple give a split of the revenue generated by an iPhone's iAds, but they can also beat Google on the percentage they currently get.
From Apple's perspective, even if the iPhone's business was to completely dissapear, they still have the Mac, iPod, iTunes, iBooks and iPads. Besides some Google Business users, the largest and most significant contributor to Google's business is mainly advertising. And now with iAd, Apple is attacking the jugular in the most promising upcoming market - mobile.
I can see why Vic had his panties in a bind at IO the other day. I can also see why Apple is doing a lot of the creative work for iAd itself for the first round of clients. Apple wants to make sure iAd is an absolute success so it can slow down Google and Microsoft, but also to get on additional carriers without the need for an exclusive contract.
Is a Verizon iPhone coming out? As much as Verizon loves Android, they love easy money even more. With an iPhone, Verizon will add an additional stream of income and one of the most sought out smartphones in the market. A win-win as far as I'm concerned.
