Google Pays Apple $1 Billion Annually for iOS Default Search

[Michael Essany]

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.

Devitt, however, doesn't think a revenue sharing deal with Google is in place “because it’s too messy” in terms of Apple's preferred method of doing business.

“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.”

Source: BI

[vinaygoel2000]

I never go on google.com. I always use spotlight or the top right box on safari. Google is my default search engine.

Matter of fact, I don't even use google.com as my homepage on my desktop. I use the New Tab page as homepage. I can still type in the address bar and search google without actually going to google.com.

[Perceptum]

This is why Google puts out their own OS.

[Anonymous]

I never go on google.com. I always use spotlight or the top right box on safari. Google is my default search engine.

Matter of fact, I don't even use google.com as my homepage on my desktop. I use the New Tab page as homepage. I can still type in the address bar and search google without actually going to google.com.

I too live the thug life.

[jOnGarrett]

Google is so cool.

[Mrteacup]

This is why Google puts out their own OS.

I guarantee google at least cuts even with the tons of ads and web popularity from iOS. Honestly have you seen the chats I think it's 83% of all mobile web traffic is ios