This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Apple's Threat to Google

Stocks in this article: AAPL GOOG

SAN FRANCISCO ( TheStreet) -- Apple's (AAPL) unveiling of the iPhone 5s and iPhone 5c on Tuesday showed the Cupertino, Calif.-based technology giant can still innovate and throw a few surprises at us. Even though Apple generates the majority of its revenue from the iPhone now, a software announcement that went under the radar could be Apple's biggest threat to Google's (GOOG) dominance in search.

As part of iOS 7, Apple's Siri can now search Twitter, Wikipedia and your photos when looking for answers to questions. Craig Federighi, Apple's senior vice president of software engineering, made the announcement during the iPhone unveiling.

Google no longer has a deal with Twitter, having once indexed tweets into its real-time search engine. That deal ended a couple of years ago, as the relationship between the two companies has frayed. Google no longer offers real-time search, with the link redirecting to Google's homepage.

Apple and Twitter, in contrast, have a solid working relationship, with Twitter having been integrated into iOS 5 in 2011.

Since that time, Apple and Twitter have continued to work on expanding their relationship, but the announcement of Siri, Apple's voice assistant, searching Twitter indicates Apple is more serious about its software and services than ever before. It has been speculated that Apple would use Siri to really attack Google's core search business. Having Siri search tweets, Wikipedia pages and photos furthers that speculation and brings it to the forefront more than ever before.

This isn't just about Apple strengthening its relationship with the micro-blogging social network and relying less on Google. It's about making Siri the future of search, with voice integration the key.

Both Apple and Twitter couldn't be reached for comment for this story.

Search is a very lucrative business, with Google generating $13.11 billion excluding TAC (traffic acquisition costs) in advertising and other revenue during its fiscal second quarter. This is by far Google's largest revenue product, and allows the company to fund other projects such as Google Glass, Android, etc., as many of these ventures are just an extension to get consumers to keep searching Google's engine. By not having Twitter integrated into its search (or owning Twitter outright), Google's core revenue driver is maturing. It now lacks something which Apple has the rights to.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs