Google Pays Apple $1 Billion A Year To Be Default Search Provider On iOS [Report]



Google pays Apple around $1 billion a year to be the default search engine on iOS, according to Morgan Stanley analyst Scott Devitt, and that figure is going to rise in the years ahead. That’s more than a lot of companies turn over in a year, and Apple banks it for doing literally nothing.

Apple and Google have a “per-device” deal rather than a revenue sharing deal, according to Devitt’s report, titled “The Next Google Is Google.” So for every $1 of search revenue Google makes on iOS, Apple gets 75 cents. This is to simplify accounting and allows Apple to collect its payment up-front.

This year, that will equate to around $1 billion. That doesn’t seem like much when you consider Apple made more than $13 billion in profit during the last quarter alone, but it’s a pretty hefty sum just for making Google the default search provider on iOS. Furthermore, the figure is only going to rise in the years ahead.

It’s a good deal for Google, too, according to Devitt. When you consider that iOS — along with Google’s Android — are dominating the mobile market, paying around $1 billion a year for a monopoly on the most lucrative online business in the world is nothing. I’m sure Google makes it back pretty quickly.

Via: iDownloadBlog

  • DonPope

    “…$1 billion. That doesn’t seem like much…”

    Errr… yes it does.

  • Eric

    You think at that rate, Apple can give the option to make Google Maps the default Map on the iPhone. As much potential Apple’s Maps has, it still doesn’t hold a candle to Google Maps. Even with it’s 3D buildings. Which for me is pretty useless, unless you can zoom in right in to the front door of one of those buildings.