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Google Pays Apple $100,000,000/Year for Search

- By - Source : Tom's Guide US

Recent reports suggest that Apple and Microsoft could team up to offer Bing on the iPhone, robbing Google of the cozy default position it currently holds.

Today we learn that Google is actually paying a lot of money for the privilege of appearing as the default search engine in Safari. The Business Insider cites people familiar with the matter who say Apple's contract with Google earns the Cupertino-based electronics company $100 million a year.

If the Bing rumors are true, it's very likely that Microsoft is offering Apple more money, hence the latter's decision to give Google the boot. However, it's also possible that with Google now firmly established in the smartphone market and presenting a real threat to the iPhone, Apple just wants to switch search providers for the sake of keeping away from the competition.

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Abrahm 02/12/2010 7:58 PM
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I think it's the latter. Apple knows that Android devices are going to take over the market and render the iPhone a niche just like the Mac. They are trying their best to delay the inevitable.

Shez 02/12/2010 8:02 PM
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Wah?! 100 million a year?

I'm curious, if Google hadn't been paying them, which search engine would have Apple used? Yahoo (teh suck)?

oconnellda 02/12/2010 8:08 PM
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I agree with Abrahm. Once the Nexus One hits Verizon, things will definitely heat up. I don't understand Google's love with T-Mobile. If the iPhone had been on T-mobile, it would probably have not done nearly as well.

Open-source software is really becoming a powerful option for most computer users. The only place it struggles is business. While openoffice is nice, a lot of software that businesses use needs to become compatible.

insaneclowngod 02/12/2010 8:12 PM
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Quote : Shez

Wah?! 100 million a year?

I'm curious, if Google hadn't been paying them, which search engine would have Apple used? Yahoo (teh suck)?


Which is powered by others most of the time anyway

"In July 2009, Yahoo! signed a deal with Microsoft, the result of which was that Yahoo! Search would be powered by Bing."

tenor77 02/12/2010 8:25 PM
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How much do they want to pay me to make it my default engine?

I'm taking bids!

maigo 02/12/2010 8:29 PM
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magicandy 02/12/2010 8:30 PM
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Shez :
Wah?! 100 million a year?I'm curious, if Google hadn't been paying them, which search engine would have Apple used? Yahoo (teh suck)?



Whichever search engine company gives them the most money. Google is paying them a ridiculous sum because they know someone else would if they didn't. Obviously if Apple was choosing the default browser based on usability and actual worth, Google would be the choice no contest. But since the iPhone is so popular Apple sees it more of an area to profit. It just so happens that Google knows how to preempt things and throw money around just like the rest of them.

chronicbint 02/12/2010 8:35 PM
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JohnnyLucky 02/12/2010 8:42 PM
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WOW! That's a lot of zeroes behind the $1!!!

grieve 02/12/2010 8:59 PM
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Shouldn't ALL search engines be available to keep the playing field fair.

It seems to me Apple could be forced to add Bing for free if Microsoft pursued this through the courts. Just as Windows can not longer only have Bing as a search engine option.

pocketdrummer 02/12/2010 9:00 PM
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If only 0.01% of that money went to me... I could make a decent living.

hakesterman 02/12/2010 9:03 PM
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cichy69 02/12/2010 9:39 PM
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Abrahm :
I think it's the latter. Apple knows that Android devices are going to take over the market and render the iPhone a niche just like the Mac. They are trying their best to delay the inevitable.




exact thing I was thinking... and most probable in my opinion

marsax73 02/12/2010 9:47 PM
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$100 Million a year??? what a waste! Bing sucks and people will still go to Google anyways. Put that money into more free services for users!

cscott_it 02/12/2010 9:48 PM
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hakesterman :
Abrahm - I think it's the latter. Apple knows that Android devices are going to take over the market and render the iPhone a niche just like the Mac. They are trying their best to delay the inevitable.Abrahm your either on crack or meth if you think the Iphone or Imac is going away anytime soon. Unlikemicrosoft their buisness is actually still growing. I always get a kick out of these losers who try to convince the world AMD and Apple are just going to fall off the face of the earth tommorow. They havebeen saying it for a decade and it just never happens, instead they just keep growing.



I wouldn't imply Microsoft's business is failing. That's just stupid. If you ONLY look at the Home OS side of the market, well, they pretty much own it.

That doesn't include their line-up of business products (Windows Server, Exchange, Office, Dynamics [an alternative to SAP for small business], etc.).

As coincidence would have it, the iPhone is still behind the Blackberry, and it's very unlikely any other phone will replace it as the choice of businesses.
(BES does more than just push e-mails)

I'm not saying Apple still isn't going to be growing, love him or hate him, Steve Jobs is has managed the Apple image brilliantly, however I'm not sure that their market will be able to keep expanding as quickly as it has been over the past 'N' years without lowering prices or improving on the overall experience.


/endrant

As an aside, Google is more of a direct threat to Apple than Microsoft is at this point. So it makes sense if they get off of the caffeine.

joebob2000 02/12/2010 9:51 PM
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Abrahm :
I think it's the latter. Apple knows that Android devices are going to take over the market and render the iPhone a niche just like the Mac. They are trying their best to delay the inevitable.



LOL they sure have a funny way of saying it... "Let's see, how can we stay relevant... OH I GOT IT! We will switch all our users from Google (whom people pretty universally love) over to Bing!"

This has to be about a better offer from Microsoft, or Google trying to fetch a better price for their lock-in considering Apple's safari isn't in front of as big of a % of eyes as it once was. It would be pretty dumb for Apple to switch search engines just because Google is available on other smartphones, when Google is the one paying *Apple* for the privilege. If it were the other way around, and Apple were paying Google (for some reason) to use them, then it could be a conflict of interest to continue the relationship. As it is, Apple should want to hold on to that gravy train as long as they can.

Anonymous 02/12/2010 9:52 PM
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Yes... switch away from Google because they are now starting to encroach on Apple's core businesses, namely smartphones (Android) and OSes (Chrome)... to Microsoft who has already been competing with them in said core businesses for decades...

Doesn't make sense to me.

yahee71 02/12/2010 9:52 PM
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OOOOOOOOOOO0h! it's ok for you to pay someone to be the default search engine on their system but if you have your own internet browser as the default browser in which you created in your own operating system you get sued huh?

buddhav1 02/12/2010 9:57 PM
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hakesterman :
Abrahm - I think it's the latter. Apple knows that Android devices are going to take over the market and render the iPhone a niche just like the Mac. They are trying their best to delay the inevitable.Abrahm your either on crack or meth if you think the Iphone or Imac is going away anytime soon. Unlikemicrosoft their buisness is actually still growing. I always get a kick out of these losers who try to convince the world AMD and Apple are just going to fall off the face of the earth tommorow. They havebeen saying it for a decade and it just never happens, instead they just keep growing.



are personal attacks really necessary to prove your point? i miss when people used to argue about the actual topic, instead of insulting each other.

on topic, i can definitely see the Droid soaking up a big piece of the smartphone market, but it's going to be hard to unseat the iPhone. the same situation has happened dozens of times, and i see this instance of the Droid as the first step towards an iPhone replacement. remember, the original iPhone didn't really take off until the second generation, either.

the fact that this much buzz is being created over a new competitor is very interesting to me, because it means A)prices for both phones will be competitive, B)software and apps will be pushed out sooner rather than later, and C)it opens the door for other companies to develop their own "iPhone or Droid" phones. new technology is always a positive for me.

stratplaya 02/12/2010 9:58 PM
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That seems like a bad move in the first place by Google. Why pay $100 Million to be the default search tool when you are already the default search tool most people use? Oh well, they must have cash to burn.

idisarmu 02/12/2010 10:13 PM
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hakesterman :
Abrahm - I think it's the latter. Apple knows that Android devices are going to take over the market and render the iPhone a niche just like the Mac. They are trying their best to delay the inevitable.Abrahm your either on crack or meth if you think the Iphone or Imac is going away anytime soon. Unlikemicrosoft their buisness is actually still growing. I always get a kick out of these losers who try to convince the world AMD and Apple are just going to fall off the face of the earth tommorow. They havebeen saying it for a decade and it just never happens, instead they just keep growing.



I bet you were one of the idiots who didn't understand why the smart kids had to study so hard for their exams to raise their marks by one percent whereas the dumb kids could just study a little bit (as opposed to not studying at all) and easily raise their marks by 5%.

It's harder to gain market share when you're already sitting at 80-90% since that last 10-20% is composed mostly of haters or die-hard apple fans.

coldmast 02/12/2010 10:38 PM
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Hey Google, I could use some money.
I'll make you the default search tool for my site!

crom 02/12/2010 10:41 PM
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hakesterman 02/12/2010 10:55 PM
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hakesterman 02/12/2010 11:12 PM
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dheadley 02/12/2010 11:14 PM
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I'm using a WM6 smartphone so I am obviously not the great judge of things, but didn't the iPhone sell more phones last quarter with basically one phone on one network than all the Android handsets and networks have sold combined in over a year since the first was released? or at least very close to it. I wouldn't exactly say that Google is takingtoo much away from Apple at this point.

ethanolson 02/12/2010 11:18 PM
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pocketdrummer :
If only 0.01% of that money went to me... I could make a decent living.


You'd make a decent living with an added $10K? Not me.

doc70 02/12/2010 11:19 PM
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Hey, Google, here's an idea: you keep the money and don't bother with this thing anymore. Everybody on this planet has heard of Google and the few that did not are not using any computers. You don't need any more advertising.

There, I just saved you $100,000,000.

doc70 02/12/2010 11:23 PM
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@ hakesterman

Dude, take a chill pill...wtf. You must have anger spit all over your keyboard.

Abrahm 02/12/2010 11:30 PM
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doc70 :
@ hakestermanDude, take a chill pill...wtf. You must have anger spit all over your keyboard.


The least intelligent tend to be the most vocal.

karenskym 02/12/2010 11:37 PM
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hakesterman :
I bet you were one of the idiots who didn't understand why the smart kids had to study so hard for their exams to raise their marks by one percent whereas the dumb kids could just study a little bit (as opposed to not studying at all) and easily raise their marks by 5%.It's harder to gain market share when you're already sitting at 80-90% since that last 10-20% is composed mostly of haters or die-hard apple fans.Here's another Fanboy that has his head up his Bung H_le. First of all i am not a die hard Apple fan any more than you are a retarded Microsoft Fanboy. Yes Microsoft has 80 percent of the market sharebecause they were the first ones to make bigger leaps in the begining. If everyone who has a PC today would take an Imac into their homes and try them for two weeks free of charge, I would bet the Farm that at least 50% would switch over to Apple the first chance they got. It's the same way withcar ownership, if you start out with Chevy when your young, chances are your going to be driveing them till you die unless you have a horrible expieriance with them. But that's here nor there, i couldcare a less who has the bigger market share, that doesn't make a Pc better than a Imac, it just meansmore people are still living under an old philosophys. And even that is here nor there, the point is itis retarded to come on here and post that Iphone is going to die because of Android or Imac is going toDie because of Win 7 or AMD is going to Die because Intel ownes 80 Percent market share. Those arguments are as stupid as stupid gets, it's ok to be stupid but please be stupid in your own home andstop posting your stupidity here.



WOW, He is just stating statistics hakesterman... He doesn't sound like a Microsoft Fanboi, you sound like a mac fanboi. You also cant say that most people will switch to mac. That is simply not true.

Also, APPLE AND MICROSOFT are not direct competitors. Jesus Christ, Jobs and Gates said that specifically in their 2007 joint interview and yet you people continue to fight about it.