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Apple Feeling Lucky? Brawl Endangers Google Search on iPhone

Thursday, 9 Aug 2012 | 2:42 PM ET
Future Publishing | Publishing | Getty Images

Things are getting ugly again between Apple and Google.

With the exception of Google's search product, Apple is basically kicking Google off its latest operating system iOS6.

The iPhone and iPad maker announced earlier this week that YouTube would not be featured on iOS6. That followed June's news, when Apple said Google Maps would be replaced with Apple's own map system on its platform.

But Google is striking back at Apple — taking aim at its premier voice search feature, Siri.

The Internet search giantannounced Wednesday it would be adding its own voice search feature to its iO6 Google application, which will function much like Siri, by users asking direct questions.

"This is the latest salvo in the war between two giant companies and certainly ups the stake in these two companies," said Darren Chervitz, director of research and co-portfolio manager at Jacob Asset Management, on CNBC's Fast Money.

"It's just a clear indication that the relationship between these two companies is deteriorating pretty quickly, and personally I think Google has the most to lose," Chervitz added.

Siri-ous Competition for Apple?
Google search is still Apple's default though that may change, says Darren Chervitz, Jacob Asset Management. Meanwhile the FMHR traders break down retail earnings.

Google may wind up on the losing end because their entire business is built around search, the analyst notes. Although Google's search functions still remain on Apple products, it may not be long before Apple scraps that as well, Chervitz said.

"With Siri being developed and Apple looking to remove a lot of the Google products, I would have to think at some point the search product is also in jeopardy," Chervitz said. "And that is not only a sizeable business for Google right now, more importantly it is very important in terms of future growth because mobile is the key battle ground for search going forward."



email: tech@cnbc.com

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