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Apple to Drop Google’s YouTube From New Version of IOS

Apple to Drop Google’s YouTube From Next Mobile Software Upgrade
The Youtube app shown on an Apple Inc. iPad. Source: Bloomberg

Aug. 7 (Bloomberg) -- Apple Inc. said Google Inc.’s YouTube won’t be included in the next version of the software used in the iPhone and iPad, the latest evidence of escalating competition between the two companies.

Apple has featured YouTube as a core application since the iPhone debuted in 2007. As Google has pushed into the market with its Android software -- now the most-used smartphone operating system -- the relationship between the two companies frayed. Apple also plans to replace Google’s maps application with its own in the next iOS release.

“Their two ecosystems are pulling away from each other,” Carl Howe, an analyst at Yankee Group, said yesterday. “This is two companies agreeing they just don’t want to work together anymore.”

Users will see the effects when the next version of Apple’s mobile software, called iOS 6, is rolled out later this year. A license expired that let the company include YouTube, Trudy Muller, a spokeswoman for Cupertino, California-based Apple, said yesterday. As a result, the YouTube app won’t come pre-installed on future iPhone, iPad and iPod Touch releases or if a user downloads iOS 6 to existing devices.

Customers who want to view YouTube on an iPhone will have to access it through Apple’s Safari Web browser or an application downloadable from the App Store.

Apple is scheduled to unveil the next iPhone -- which is expected to feature the latest iOS version -- at an event on Sept. 12, two people familiar with the plans said last month.

Standoff

“We are working with Apple to ensure we have the best possible YouTube experience for iOS users,” Chris Dale, spokesman for YouTube, said yesterday.

Before the current rivalry, Apple and Google had a closer relationship when Eric Schmidt, Google’s chairman, sat on Apple’s board. He resigned from that position in 2009, as Google stepped up its efforts to deploy software for mobile phones and computers that would compete with Apple products.

Apple has sued Google’s main Android partner, Samsung Electronics Co., for $2.5 billion in federal court in California, claiming that Samsung infringed patents covering designs and technology for mobile devices. Samsung, based in Suwon, South Korea, countersued and will present claims that Apple is infringing patents covering mobile-technology standards.

Google’s shares fell 0.6 percent to $639.21 at 9:52 a.m. in New York, while Apple declined 0.4 percent to $620.

To contact the reporter on this story: Adam Satariano in San Francisco at asatariano1@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

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