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I don’t get that reasoning. The value of the searches doesn’t come from the abilities google has with them. At least not primarily. It comes from the ability of
by hnaccount_rng 5y ago
I don’t get that reasoning. The value of the searches doesn’t come from the abilities google has with them. At least not primarily.
It comes from the ability of iPhone _users_ to pay for purchases. It is this purchase power that makes the searches valuable to advertisers (and hence google). iPhone searches are valuable because iPhone users tend to have higher disposable income^.
Additionally I’d say that the number of users switching over the search results of google vs DDG is approximately zero ;)
^ Of course in second order there is an added value of being able to subdivide iPhone users in smaller segments which might add some value (to google). But I’d bet that loosing out on >95% of those searches would be bad for google. Especially strategically as a significant fraction of their former income would then fund someone else’s search engine development. This sounds eerily like Intel’s refusal to build the chips Apple wanted, which pretty much funded TSMC’s technical advantage. And back then nobody knew that those would go into a >200bn$/year product with 30% margins.
- wutbrodo 5y ago> The value of the searches doesn’t come from the abilities google has with them I don't follow you here. Is the claim that Google's tracking of users is not for the purposes of increasing revenue? Why else would they be doing it, particularly given the PR cost? > iPhone searches are valuable because iPhone users tend to have higher disposable income I don't understand how this is relevant. IPhone users do indeed have higher ARPUs for this reason. Why would that make them immune to the assumed increase in per-user revenue that tracking provides to Google? Ie, the effect you're describing (disposable income of user) is orthogonal to the one I'm describing (tracking techniques used on user), and both are inputs to the ARPU equation.