According to a new report from Morgan Stanley analyst Scott Devitt, Google is more than willing to pay a pretty penny if it means retaining its dominant 95% share of the mobile search market.
Notwithstanding the epic rivalry of their warring mobile operating systems, Android-maker Google pays iOS-maker Apple an estimated $1 billion per year. Devitt says Apple collects the enormous sum in return for keeping Google the search default on all iOS devices.
In the past, some analysts have estimated that Apple has a revenue sharing deal with Google on iOS search. So that for every one dollar of search advertising collected on an iOS gadget, Apple gets 75 cents.
“He [Devitt] thinks Apple would do a fee per device because it’s easier for accounting and it gives Apple upfront payments,” Jay Yarow of Business Insider reports. “It’s also a hedge against users going to Google.com and searching from there instead of the default search box on iOS.”