Apple to battle with Google for mobile ads
By Chris Nuttall and Richard Waters, FT.com
(FT) -- Apple launched a war with Google over mobile advertising revenues on Thursday as it announced its own iAd network for the iPhone.
The move challenges its Silicon Valley rival's core business model and its plans to expand into mobile devices.
Steve Jobs, Apple chief executive, said that Google's search-based advertisements were not the future for mobile devices because users tended to spend their time inside "apps" rather than browsing the web.
"On a mobile device, search is not where it's at, not like on the desktop," he said. "They're using apps to get to data on the internet, not generalised search."
Apple will launch its iAd network on the iPhone, iPod touch and iPad later this year. In February, the iPhone and iPod touch accounted for 40 per cent of the mobile ads served up by one of the biggest ad networks, AdMob -- a sign of the dominance of Apple's software platform in the mobile ad market.