Clash of the Tech Titans: The Google – Apple Power Race
Users of Apple’s iOS6 and the well-informed consumer are aware of the changes that accompanied the release of the new operating system and their overarching relation to Google. Namely, the removal of the familiar YouTube application from Apple’s mobile devices has drawn attention to the escalating struggle for market power between the two technological giants.
NBC News commented in August on Apple’s announcement to remove the pre-loaded YouTube application by stating that “the move was the latest sign of the growing rivalry between the technology companies…” [3]. This competitive atmosphere can be more clearly understood by analyzing how each of the involved parties interacts with one another.
If we consider Google and its wholly owned subsidiaries to be a completely connected local network with a strong tie between YouTube and Google, then we begin to see the potential for triadic closure. When observing the network subset that includes YouTube and Apple from a consumer product perspective, we realize that the connection between the two entities is also strong, which would suggest that Google should form a tie with Apple to satisfy Strong Triadic Closure. However, this is not the case. In fact, Apple’s recent act of separation both benefits and damages Google, but ultimately weakens the tie between both companies and removes the necessity of a strong bond.
Under their previous license, Google had limited control over the features and presentation of the pre-loaded YouTube application. Now, however, Google’s release of a YouTube application will provide more design freedoms and allow the company to earn revenues from advertisements, a benefit that was prohibited under Apple’s mobile media contract [2]. The division may have also made Google more uniquely connected to YouTube, thereby giving them more power than they previously held. Despite these advantages, the newly imposed inconvenience of downloading a separate application or using the website itself will likely hurt YouTube’s consumer base. Approximately a quarter of all YouTube views come from mobile sources [1], a majority of which are likely to be Apple products. Thus, the separation may diminish viewership, thereby devaluing YouTube and potentially harming profits. This decision was likely a deliberate move by both companies to seek the greatest individual advantage while weakening the competitor.
As we actively watch to see which company will establish dominance in the tech world, it is clear that both entities will continue to advance and produce technology intended to outmatch their predecessors.
-ogg5
References:
- http://www.cnn.com/2012/09/11/tech/mobile/youtube-iphone-app/index.html?iref=allsearch.
- http://www.mercurynews.com/business/ci_21514173/google-releases-new-youtube-app-apples-iphone
- http://www.nbcnews.com/technology/technolog/apple-says-youtube-app-wont-be-part-new-mobile-software-927116
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OK – I allowed the add-on and my laptop is still up & running so I guess its OK. I enjoyed the Blog.
Ironically, I just got done updating the OS on my iphone (which took forever). I had no idea that they had removed the youTube icon until you mentioned it.
Your Blog looks great. I found it interesting & informative. Thank you for that
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