Google Search and Safari: A Billion Dollar Proposition

[Phillip Swanson]

Despite Apple adding Bing and Yahoo as search engine options in iOS, Google remains the default Safari search engine. It turns out Google pays a sweet sum to keep it that way.

Google pays a hefty $1 billion for the right to receive all of the glorious search queries logged by iDevice users. While that seems like a massive amount for a rather invisible honor, the pay out for Google is rather large. According to Macquarie analyst Ben Schachter Google sees revenues of nearly $1.3 billion because of their default search status.

Google’s $1 billion investment might seem steep, but the $300 million in profit is accompanied by the massive amount of data collected on millions of iDevice users. This treasure trove of information is likely invaluable compared to the advertising profits in Google’s eyes.

Don’t expect Bing or Yahoo to pony up the kind of cash necessary to supplant Google as the default Safari search engine any time soon. But, be aware Google views every iDevice user and their information as cog in their business plan. It'd be interesting know how the Google Search and Apple relationship has changed over the life of the iPhone and iOS. Apple appears to have the upper-hand now as they could drop default support for Google search and not miss a step. However, at the iPhone's inception Google search and Google Maps integration were touted features. How times change.

Source: Business Insider [via iDownloadBlog]

[TheDirtyDiddler]

Apple should pull a Google and enter the search business.

[celeron]

Apple should pull a Google and enter the search business.

They would lose the 1 billion dollars google pays them.

[Scotty Manley Silberhorn]

They would lose the 1 billion dollars google pays them.

Apple has almost $100 billion in cash. I think they would be ok if google didn’t give them 1billion and started taking business/ searches away from google.

[ByteArt]

Why would apple want a search engine? The markets filled up.

[santacruzlocal]

Why would apple want a search engine? The markets filled up.

Because They Can !!!

[Gerneio]

I like google... It's way more universal than most of the other search engines

[celeron]

Agree^^

[idkanymore]

Why would apple want a search engine? The markets filled up.

just like the cell phone market was "filled up"?

[TheDirtyDiddler]

Well I trust that if Apple did enter the search business, they'd do it in a different and improved way. It would also diminish their reliance on their main competitor, Google, which already seems to be happening in the Maps department.

[fulcrom]

Apple could get into the search business they have a captured market, but they shouldnt i believe they should keep doing what they do best innovate, MAKE A DEAL WITH GOOGLE FOR TURN BY TURN NAV PLEASE my 2cents

[!zy]

Apple could get into the search business they have a captured market, but they shouldnt i believe they should keep doing what they do best innovate, MAKE A DEAL WITH GOOGLE FOR TURN BY TURN NAV PLEASE my 2cents

Don't get me wrong but i enjoy apple products, i have owned without regret all the iPhone's but recently (temporarily till next iPhone - iPhone 5 maybe) i brought the galaxy nexus and i have to admit, they do have very innovative and original ideas and the os is pretty f****ng good....

BUT if apple ever did get into the search business (I HOPE THEY NEVER DO)... they would restrict to search preferable too much for ppl to find a wider information, they might even give information that they want ppl to see depending on the topic...... so apple stick to software's

[Alluziion]

Search engines aren't a profitable enough market for Apple to enter and taking Google's market share would take a very long time (but doable with their innovation) but you should never forget that Google are also great innovators so the competition would not be worth the hassle. I personally think Apple should continue saving their banked capital and maybe search for new market opportunities away from technology but still innovative in order to diversify their product mix and in my personal opinion I think the future of pharmaceuticals could do with some serious innovation and investment - it would be a massive risk but when you got over 100 billion dollars to dispose of then it's that big of a deal when compared to the potential profits and the way the positive impact they could have on human life... many will disagree but this is my two cents.

They would lose the 1 billion dollars google pays them.

But make $1.3b instead...

[KraXik]

An Apple search engine wouldn't be very popular because they wouldn't allow porn on it!

[brodimus]

If Apple made their own search engine, everyone would still use Google anyway.

[*T*]

Apple already has a search engine... Siri, remember? And how Siri bypasses google for most things...

[c14rlf]

apple in the search business would bring totally biassed results. just stick to making average smartphones, also what would they call it??? iSearch or The New Search......geniuses in the naming departments!!!

iSpy i guess

[cgavula]

apple in the search business would bring totally biassed results. just stick to making average smartphones, also what would they call it??? iSearch or The New Search......geniuses in the naming departments!!!

iSpy i guess

I don't think Apple should get into the search business, but guess what? Google's results are NOT unbiased. They have been playing with the results for years to direct people to their advertisers and been called on it numerous time. So all this crap about Apple "restricting" searches is nonsense. You have no idea what they would or wouldn't do because they have no track record in that business. Instead you should pay more attention to the fact that Google already plays games with the results you receive!

[iLoveWindows&iPhone]

Siri Search

[jamestaylor]

I think Google is the most secured search engine. I have used Google and Apple mail both. In my opinion Google is extremely simple and easy approach to use it.