Yahoo rolls out new browser for iOS, named Axis – Part 3

What Yahoo has done is subdued for the time being, their major earning source, advertisements on the Yahoo search result pages. The integration of the results in the browser is very attractive but the lack of ads will certain tax on the revenues the company makes. Ironically, Yahoo’s revenues from the advertisements just made a return to profitability last quarter after a two-year long slide.

Advertisements will eventually come to the browser in one way or the other but the interim time will have a reverse effect on the company’s earnings.

Moreover, the desktop-version—the plug-in—also tows the same line as the mobile version. It takes the user directly to the web page bypassing the results pages.

Thinking about revenues from advertisements and working out a strategy around it is short-sighted. The bigger picture in this case is that Yahoo now has its strong presence in stand-alone apps and in the long run this gutsy move will earn the company a great deal of repute and profitability, eventually.

In short the browser is a very brave idea from a beleaguering company. It is very intuitive and interactive. Giving priority to smartphone and tablets is a brilliant move as most of the computing these days is done on the go. What Yahoo should be careful about is competition in the market. Google is hoarding millions of dollars into its Chrome project and Microsoft has recently revved up its engine to promote its Internet Explorer. In the presence of these companies Yahoo will have to be extremely cautious if they steal the idea of searching for Google.com and Bing.com.

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Posted by Usman Khalid on May 24 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.