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Google Could Be Paying Apple $1 Billion Annually to be iOS' Default Search Engine

By - Source: Business Insider | B 17 comments

Figure expected to increase in the coming years.

Google is said to be paying Apple $1 billion a year in order to be the default search engine on iPhones, iPads and the iPod touch.

Morgan Stanley analyst, Scott Devitt, revealed the figure in a recent note to investors. He believes that Google’s search business has the potential to progress further through expanding markets and subsidiaries such as YouTube, which he sees generating as much as $20 billion by 2020.

Devitt estimated that the $1 billion Google pays to Apple to be the default search engine in iOS is expected to increase over the next few years. It was previously believed that both companies were involved in a revenue sharing deal, but the analyst dismissed that notion, as it would be too complicated for the two technology giants.

Instead, Devitt believes that Apple has agreed upon a fee per device agreement in order to receive upfront payments. The partnership has apparently resulted in Google accounting for 95 percent of the mobile search market.

 

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  • 10 Hide
    christarp , February 13, 2013 12:50 AM
    The-DarkeningJust what apple needs. More money to the suing force.

    why would anyone do something for free when they could make money off of it? Apple has a huge user base, this is a worthy investment for google and apple. They're both benefiting from this.
  • 10 Hide
    krog216 , February 13, 2013 12:51 AM
    It's okay. Google makes much more than what they pay Apple from having Google be default.
Other Comments
  • 3 Hide
    The-Darkening , February 13, 2013 12:49 AM
    Just what apple needs. More money to the suing force.
  • 10 Hide
    christarp , February 13, 2013 12:50 AM
    The-DarkeningJust what apple needs. More money to the suing force.

    why would anyone do something for free when they could make money off of it? Apple has a huge user base, this is a worthy investment for google and apple. They're both benefiting from this.
  • 10 Hide
    krog216 , February 13, 2013 12:51 AM
    It's okay. Google makes much more than what they pay Apple from having Google be default.
  • 7 Hide
    457undead , February 13, 2013 12:59 AM
    Shouldn't it be the other way around?
  • 7 Hide
    john15v16 , February 13, 2013 1:03 AM
    Quote:
    Google is said to be...Morgan Stanley...He believes that...It was previously believed...Instead, Devitt believes...


    uuhhmm...is it just me or is there really no REAL evidence this Google/apple partnership actually exists. Is this just another Zak I-ham attempt at creating intrigue to attract readership? Could it be that Zak is full of crap? Or, better yet, FULL of non-editorial prowess? Stay tuned folks for another article soon to come....
  • -8 Hide
    john15v16 , February 13, 2013 1:03 AM
    Quote:
    Google is said to be...Morgan Stanley...He believes that...It was previously believed...Instead, Devitt believes...


    uuhhmm...is it just me or is there really no REAL evidence this Google/apple partnership actually exists. Is this just another Zak I-ham attempt at creating intrigue to attract readership? Could it be that Zak is full of crap? Or, better yet, FULL of non-editorial prowess? Stay tuned folks for another article soon to come....
  • 3 Hide
    Soda-88 , February 13, 2013 1:04 AM
    Kids in school should be taught to have AdBlock on every device.
  • -8 Hide
    John15v17 , February 13, 2013 1:12 AM
    Quote:
    Google is said to be...Morgan Stanley...He believes that...It was previously believed...Instead, Devitt believes...


    uuhhmm...is it just me or is there really no REAL evidence this Google/apple partnership actually exists. Is this just another Zak I-ham attempt at creating intrigue to attract readership? Could it be that Zak is full of crap? Or, better yet, FULL of non-editorial prowess? Stay tuned folks for another article soon to come....
  • 1 Hide
    John15v17 , February 13, 2013 1:13 AM
    apologize about the multiple comments folks...browser issues....
  • 2 Hide
    Shin-san , February 13, 2013 1:20 AM
    Ah: it could be sharing revenue from the ads. I thought they were paying Apple just to be the browser of choice.

    It's funny that the other choices are Bing and Yahoo, but that's basically Bing and Bing
  • 5 Hide
    deftonian , February 13, 2013 1:41 AM
    geez, and here I am trying to earn 50k a year... makes me wish I had the genius to come up with some great tech.
  • 1 Hide
    digitalvampire , February 13, 2013 1:45 AM
    Is anyone else tired of the entire industry giving Apple the soft glove while letting them say and do (ie sueing excessively) whatever they want. I'm so tired of the industry treating Apple like the annoying child that it feels bad for and doesn't want to look like the bad bad parent by punishing them. Apple makes plenty of money. Treat them like an adult. Don't pay them to use your services. Make them to pay you, or, even better, block their products until they change their ways. Good god, BAN Google search, Gmail, Google Maps, and Youtube on ALL Apple devices (in and out of browser) and just claim some vague reason like "ensuring compatibility" for doing so. (ie the same thing Apple does ALL THE TIME). Just because Apple's primary market is the "less technically inclined" doesn't mean that they are, especially when it comes to business.

    Rant over. Sorry for any grammatical errors.

    P.S. This is just a rant. I know this would never happen for PLENTY of reasons.
  • -1 Hide
    QEFX , February 13, 2013 1:57 AM
    So if each partner level lawyer makes 200k per year and each legal tech employee making 30k, assuming 10 techs per primary and an additional 100% of payroll costs as clerical / office overhead / expense accounts ... how many lawyers is Google effectively paying apple?

    For bonus marks: If three lawyers can file 2 lawsuits per year ... how many companies per year can apple sure with Google paying for it ?
  • -3 Hide
    fatality1515 , February 13, 2013 2:29 AM
    Google you fool.. Why would they pay 1 billion to be the default search engine.. -.- Apple users would use google anyway over whatever the other choice is.. I don't think apple users are that dumb, are they? :) 
  • 2 Hide
    Kami3k , February 13, 2013 3:16 AM
    What kinda source is that?

    "Uh I think this company is doing that!" IS NOT A SOURCE.
  • -3 Hide
    otacon72 , February 13, 2013 3:20 AM
    Samsung will be coughing up another billion soon. Love it..
  • 0 Hide
    ojas , February 13, 2013 9:09 AM
    457undeadShouldn't it be the other way around?

    Yeah, especially because...Bing doesn't look like apple's thing :D 
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