Google Could Pay Apple $3 Billion to Remain Default Search Engine on iOS

[MacRumors]

Google is set to pay Apple nearly $3 billion this year to remain as the default search engine on iPhones and iPads, according to U.S. research and brokerage firm Bernstein (via CNBC).

According to the investor note, Google is paying out three times as much to Apple as it did in 2014 for the same privilege, with Google's licensing fees making up a large bulk of Apple's services business.

"Court documents indicate that Google paid Apple $1B in 2014, and we estimate that total Google payments to Apple in FY 17 may approach $3B," CNBC quoted analyst A.M. Sacconaghi Jr. as saying.

"Given that Google payments are nearly all profit for Apple, Google alone may account for five per cent of Apple's total operating profits this year, and may account for 25 per cent of total company OP growth over the last two years," he added.

Apple has increasingly highlighted its services business as a core component of its continued growth. In a recent conference call, for example, CEO Tim Cook said the company's services had become as large as a Fortune 100 company over the last 12 months.

Apple's iOS devices contribute about 50 per cent to Google's mobile search revenue, according to Sacconaghi, suggesting Google would be unlikely to walk away from the licensing deal even if it suspected Apple would stick with Google as the default search engine anyway, given its huge popularity.

Article Link: Google Could Pay Apple $3 Billion to Remain Default Search Engine on iOS

 

[Zirel]

Hey guys!

Found the money for the Beats purchase you still have trouble swallowing!

(Tim Cook)

 

[fitshaced]

Wow a lot of money for something users would probably default to anyway.

 

[Zirel]

Wow a lot of money for something users would probably default to anyway.

Most wouldn’t really care with Bing and Duck Duck Go.

They are fine and many times DDG yields better results than Google for me.

Google is too much centered on big media sites, leaving out voices that have better content. Don’t like their results, don’t like their bias.

 

[fitshaced]

Most wouldn’t really care with Bing and Duck Duck Go.

They are fine and many times DDG yields better results than Google for me.

Google is too much centered on big media sites, leaving out voices that have better content. Don’t like their results, don’t like their bias.

Ok but most people know about Google over DDG or Bing or any other. If there was no default search, they would most likely go to Google.

 

[PhiLLoW]

Most wouldn’t really care with Bing and Duck Duck Go.

They are fine and many times DDG yields better results than Google for me.

Google is too much centered on big media sites, leaving out voices that have better content. Don’t like their results, don’t like their bias.

Bing is the worst. I installed a fresh copy of windows 10 and used IE to download the basic programs I need for every day use - first search results ( ads ) for VLC and other smaller tools were some sketchy third-party sites, probably viruses. It have been 2 great minutes but I can't recommend Bing for anyone. ( my personal opinion )

 

[Wahlstrm]

DuckDuckGo ftw!

 

[CarpalMac]

Most wouldn’t really care with Bing and Duck Duck Go.

They are fine and many times DDG yields better results than Google for me.

You are kidding? Bing is hopeless and very, very few people outside of forums like this would have even of heard of DDG.

 

[0815]

Wow a lot of money for something users would probably default to anyway.

There are lots of iPhone users that have no clue that those settings exists and wouldn't even know what those settings mean and would use whatever the default is.

 

[Tronic]

Confusing title, made me think Google was introducing a new payments system.

 

[needfx]

Confusing title, made me think Google was introducing a new payments system.

got confused as well tbh

 

[fitshaced]

There are lots of iPhone users that have no clue that those settings exists and wouldn't even know what those settings mean and would use whatever the default is.

Yes that’s my point. It’s a lot of money spent when most users would just default to using Google anyway.

 

[itsmilo]

Yes that’s my point. It’s a lot of money spent when most users would just default to using Google anyway.

Huh? Its the opposite of what you are saying. If it was not set as default, people wouldnt know how to change it and therefore would not be using Google if it is not the default option but thats what Google wants and pays for

 

[mkeeley]

DuckDuckGo ftw!

DDG is useless, the amount of times I'd have to swap to google to find what I wanted. Startpage is far more reliable and even better is searx.

 

[gatearray]

This makes me wonder how much Twitter and Facebook pay for the privilege of being baked into iOS.

 

[fitshaced]

Huh? Its the opposite of what you are saying. If it was not set as default, people wouldnt know how to change it and therefore would not be using Google if it is not the default option but thats what Google wants and pays for

If they wanted to search they would default to typing in google. Not sure why you're struggling with that.

 

[timmyh]

Confusing title, made me think Google was introducing a new payments system.

Sorry, I've changed it to be clearer.

 

[The_Martini_Cat]

I thought Twitter and FB were going to become unbaked soon. So maybe they did not pay enough.

 

[shareef777]

Wow a lot of money for something users would probably default to anyway.

Except the people that are smart enough to switch default search engines aren't the ones Google is paying this fee to entice. Anyone that can figure out a way to switch a default setting likely doesn't click ads anyway. Those that have no clue are the ones that stick with what's the default and then click ads (causing direct revenue for Google). There's a ton more of those people then there are of ones that know anything beyond default.

 

[sracer]

Yes that’s my point. It’s a lot of money spent when most users would just default to using Google anyway.

You should tell Google's executives. That'll save them some money and that should be worth a reward.

 

[einsteinbqat]

I seem to remember that DDG uses Yahoo which uses Bing, or something of the sort, no?

 

[Kevsta26]

This makes me wonder how much Twitter and Facebook pay for the privilege of being baked into iOS.

Well they aren’t in iOS anymore, so I guess they didn’t pay enough.

 

[cupcakes2000]

If they wanted to search they would default to typing in google. Not sure why you're struggling with that.

I'm not sure you really fully understand what default means in this context!

 

[Michaelgtrusa]

That is big bucks, but if you look closely at this, Google is not complaining about Apple being unfair the way Apple is about Qualcomm.

 

[Zirel]

Except the people that are smart enough to switch default search engines aren't the ones Google is paying this fee to entice. Anyone that can figure out a way to switch a default setting likely doesn't click ads anyway. Those that have no clue are the ones that stick with what's the default and then click ads (causing direct revenue for Google). There's a ton more of those people then there are of ones that know anything beyond default.

Well put out, and probably has a content blocker.
[doublepost=1502799662][/doublepost]

That is big bucks, but if you look closely at this, Google is not complaining about Apple being unfair the way Apple is about Qualcomm.

Google has nothing to complain, they pay Apple if they want, Apple needs to pay Qualcomm either they want or not!