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

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.

  • 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.
    Reply
  • 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)?
    Reply
  • oconnellda
    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.
    Reply
  • insaneclowngod
    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."
    Reply
  • tenor77
    How much do they want to pay me to make it my default engine?

    I'm taking bids!
    Reply
  • maigo
    Apple doesn't have its own search engine? even linux has like 12
    Reply
  • magicandy
    ShezWah?! 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.
    Reply
  • chronicbint
    Android will never get the same market share as the iPhone, mostly due to the general public having next to no knowledge of it.
    Reply
  • JohnnyLucky
    WOW! That's a lot of zeroes behind the $1!!!
    Reply
  • grieve
    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.
    Reply