Apple Enters Search The Day Google/Lenovo Release Tango Phone...Coincidence?

Apple's (NASDAQ: AAPL) announcement that it is entering paid search seems to have shifted the market's focus away from Lenovo's first Project Tango phone. Project Tango is Google (NASDAQ: GOOGL) developed technology that allows your handset to gather spatial data and the software to manipulate it in a "Minecraft like" environment. The demo delivered at Google I/O 2016 can be found here. The technology needed specialized hardware, however, and Google waited for Lenovo to develop a custom handset which is due to be released at Lenovo's Tech World in San Francisco today.

Meanwhile, Apple announced that this fall it will be adding one paid ad to the top of relevant search results in the App Store. These ads will only be for other apps in the App Store relevant to the search and will serve as a way for app developers to promote their apps beyond the organic search results. The ads will use AAPL’s auction system and will only charge for the ad if its tapped on (does not mention installs). The ads will be flexible, varying from automatically letting AAPL create the ad, to specific keyword selection, targeting and API’s.

Apple will charge advertisers based on a Cost per Tap or target a Cost per Acquisition goal. Apple will only show one ad per search although the model could evolve and allow for more re-engagement options. Apple also highlights that it will adhere to its relatively strict privacy standards and not allowed ads based on previous search activity, data from other apps, and will not show ads to IDs registered to minors under age 13. Apple is also updating its app subscription model to reduce its take from 70/30 to 85/15 after one year of subscription.

You May Also Be Interested In

• Tuta Mail Files Google Complaint Under EU Tech Rules - Reuters
• US stock futures tread water with top tech earnings on tap
• Alphabet (GOOG) call put ratio 4.2 calls to 1 put into quarter results