Science & Technology
Science and Technology
Science and Technology
Tue, June 15, 2010
Mon, June 14, 2010 
CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: Apple Inc. (Nasdaq: [ AAPL ]), Google Inc. (Nasdaq: [ GOOG ]), Nokia Corp. (NYSE: [ NOK ]), Microsoft Corp. (Nasdaq: [ MSFT ]) and Yahoo (Nasdaq: [ YHOO ]).
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Here are highlights from Fridaya™s Analyst Blog:
Apple Attracts Antitrust Scrutiny
Apple Inc. (Nasdaq: [ AAPL ]) has attracted an antitrust scrutiny from U.S. regulators by restricting its largest competitors -- Google Inc. (Nasdaq: [ GOOG ]), Nokia Corp. (NYSE: [ NOK ]) and Microsoft Corp. (Nasdaq: [ MSFT ]) from advertising on AAPLa™s mobile devices, including the iPhone, iPad and iPod, according to a report in the Financial Times.
Apple released its own mobile advertising network, called the iAd which brings interactive advertisement to apps on the iPhone and iPod touch devices running on the iOS 4 software platform. iAd will go live on July 1.
iAd will enable developers to earn revenue by serving ads in applications on the iPhone and other mobile devices. AAPL plans to generate over $60 million in revenue from iAd for 2010, representing 50% of the total estimated U.S. mobile ad spending for the second half of 2010.
Applea™s new developer rules restrict third party apps such as an independent ad service provider with the main business of serving mobile ads, to collect ad analytics (how ads perform on the iPhone and iPad) from the iPhone, iPad and iPod.
If imposed, the proposed terms would prohibit users and developers from using Google's AdMob service or advertising products on the iPhone and iPad, thereby reducing competition in the ad mobile space. Google acquired AdMob for $750 million in late May (Apple had also planned to acquire AdMob).
Google's representative said that the artificial barriers to competition set by Apple will come in the way of technological progress and affect users and developers in the long run. Moreover, Apple's developersa™ agreement would lower Google's advertising revenue generated over the iPhone.
According to the Financial Times report, U.S. regulators will scrutinize Applea™s actions versus third parties such as Google and Microsoft to see if it is barring them from advertising on the iPhone and iPad.
We believe this action will greatly alleviate competition and generate higher sales and profits for AAPL. This move should give AAPL a toehold in the emerging mobile search market, which is so far dominated by Google, Microsoft and Yahoo (Nasdaq: [ YHOO ]).
AAPL has reportedly adopted new policies to restrict third parties from using its exclusive software. Last month, Apple announced a new policy requiring iPad and iPhone software developers to use only Apple programming tools, according to sources. This had also attracted the attention of antitrust regulators.
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