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Google to pay Apple absurd amount of money to be default search engine on iOS

by Danny Zepeda | August 15, 2017August 15, 2017 11:30 am PST

Doing business with Apple is not a cheap endeavor. Google has long known this, paying a ton of money for the right to be the default search engine on iOS in the past. That figure has continued to grow to the staggering tune of $3 billion in 2017 according to a financial firm’s estimate.

Bernstein revealed in a note to investors it believes Google is paying Apple $3 billion this year alone to be the default search engine on iOS. That figure has tripled from the $1 billion Google was paying for the rights in 2014. The sum is a staggering amount, but it may actually a win for both companies.

Google makes 50-percent of its mobile search revenue from iOS. That’s a big amount worth much more than the $3 billion it’s paying Apple. It can ill-afford (or is too afraid) to mess with the dynamics of that deal. That makes it a necessity to push for a deal with Apple, at which point Apple wins thanks to the huge amount of money it gets from Google.

The report mentions the deal is “nearly all profit” for Apple and that Google may be responsible for 5-percent of Apple’s total operating profit this year and as much as 25-percent of its total company OP growth for the past two years. Even though Apple and Google are competing companies, they still have a working partnership that yields a ton of profit for each other.

Users can still opt to use a different search service through the settings, but it is highly unlikely they will.


Danny Zepeda

Born and raised in Southern California, Danny grew up on a steady diet Pixar, Star Wars and Steven Spielberg movies. Unbeknownst to him, this was...