Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Yahoo! Inc. (YHOO) and Apple Inc. (AAPL): This Could Be a Beautiful Marriage

Yahoo! Inc. (YHOO)There have been numerous rumors over the past week that Apple Inc. (NASDAQ:AAPL) and Yahoo! Inc. (NASDAQ:YHOO) are thinking about taking their relationship to the next level. Both The Wall Street Journal and Bloomberg have chimed in with reports to that effect.

Here’s the thing: This could be a beautiful marriage.

An unexpected rendezvous
As it turns out, Apple Inc. (NASDAQ:AAPL) and Yahoo! Inc. (NASDAQ:YHOO) both happen to be heading toward the same destination. Apple needs to bolster integration with third-party data sources and cloud services, while Yahoo! is trying to regain relevance in the mobile era. Meanwhile, they share a mutual enemy in Google Inc (NASDAQ:GOOG).

By fetching data from Yahoo! on the back end for numerous services beyond the current partnership (primarily stocks and weather), Apple Inc. (NASDAQ:AAPL) could further snub Google Inc (NASDAQ:GOOG). If Yahoo! Inc. (NASDAQ:YHOO) can score some prominent screen real estate on iOS devices, that gives the company a renewed sense of mobile relevance.

Even beyond the high-level strategic implications, there’s another important department where Apple’s and Yahoo!’s interests converge: design.

Design matters
Apple’s iOS interface is aging, and many users (including myself) have been calling for a revamp. This may already be en route, with design guru Jony Ive now directing interface at Apple and the Mac maker’s Worldwide Developer Conference, or WWDC, coming up in June. WWDC is typically when Apple Inc. (NASDAQ:AAPL) shows off the newest versions of iOS to developers and the world, and iOS 7 could be the most important upgrade in years, as it’s expected to feature an aesthetic overhaul.

Ever since becoming Yahoo! Inc. (NASDAQ:YHOO) CEO, Marissa Mayer has put a heavy focus on Yahoo!’s core products, revamping the home page and acquiring a handful of mobile startups. The company has also recently released new mobile apps for email and weather — and they’re shockingly attractive.

Both feature minimalist modern designs with typographical accents, an aesthetic philosophy more characteristic of Google Inc (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT) these days. In fact, simply comparing Yahoo! Mail and Gmail on iOS show that Mayer may be nudging her company’s design approach in the same direction as her former employer’s, and that’s a good thing.

Yahoo! Mail (left) vs. Gmail (right). Screenshot previews from iTunes App Store. Source: Apple.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.