Traffic to Google mobile signals Apple's iPhone success


Google (NASDAQ: GOOG) is getting a lot of traffic to its mobile search applications from the Apple (NASDAQ: AAPL)'s iPhone. That does not quite add up since the iPhone "accounts for just 2 percent of smartphones worldwide, according to IDC, a market research firm," writes The New York Times.

The data would seem to show that iPhone users will access internet search features 10 to 20 times more than customers with other smartphones. Based on the industry's perception of how good the handset's interface is for going online, that is possible.

The news raises two important issues. The first is that the iPhone is only available on the AT&T (NYSE: T) 2.5G network now. Later this year, it is likely to work on the faster 3G network, which could increase access to online services even more.

Beyond that, fees from using an interent browser and downloading data can be fairly significant. In other words, Apple and AT&T could be bringing in more revenue than most analysts think.

Douglas A. McIntyre is an editor at 247wallst.com.

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