The combative relationship between Apple and Google has already led to the removal of the Google Maps application from Apple's upcoming mobile operating system, and now it looks like YouTube will be the next casualty. According to the latest beta release of iOS 6 – the next-generation system designed for Apple's mobile devices – the Google-owned YouTube will no longer exist as a core application.
The iOS operating system launched with the first iPhone back in 2007 and for five years has featured YouTube as a basic stock app. Google's partnership with Apple is crumbling, and now subsequent releases of the iPhone, iPad and iPod Touch will no longer come pre-loaded with a YouTube application.
There is still speculation as to why this partnership ended. Reports have suggested that Google was looking to implement advertisements onto mobile YouTube content, something Apple refused to allow. Fingers have been pointed at both parties, with neither being considerably more responsible than the other.
The more pressing issue is what kind of affect this decision will have on either Apple or Google. Some analysts have suggested that Google will suffer because it will be harder for iOS users to watch YouTube content and they will experience a decrease in traffic. However, an article in Forbes offers a different opinion.
Nigam Arora, the author of an August 7 article, suggests that Apple may be at fault and that its deteriorating relationship with Google could bear severe consequences.
"The move raises a big concern," Arora writes. "Is Apple moving towards removing Google as the default search engine on its devices? If so, the financial impact would be material."
Both companies could experience a negative impact as a result of this move, and while they are major players in the technology market, their partnership is simply one of many bonds held among tech industry leaders. Therefore, financial advisors and investors interested in tech ETFs should examine the fundamentals of underlying stocks before investing.
Related ETFs
iShares DJ US Technology Sector (IYW)
Technology Select Sector SPDR (XLK)
Related posts: