Earlier this week, we found out Google will pay Apple over $3 billion this year to remain the default search provider on iOS. But it turns out Apple won’t be the only major smartphone maker to receive an absurd sum. A new report claims Samsung will receive $3.5 billion to ensure Google remains the top search provider on Galaxy devices.
Google has always paid Apple a hefty fee to be number one on iOS. In 2014, it was thought to be around $1 billion. But with more iPhones and iPads in use now than ever before, Apple can demand even more — and Google is willing to pay it. That’s because 50 percent of its mobile search revenue comes from iOS.
Samsung sells millions of devices, too — even more than Apple — which is why Google will have to cough up $3.5 billion to retain its position as default search provider on Galaxy devices, according to a report from The Investor. Google is likely to make that back — and a whole lot more — from searches made on Samsung phones and tablets.
It sounds like crazy money, then, but it’s worth it for Google. Losing partners like Apple and Samsung, which could just as easily team up with the likes of Yahoo or Bing, could mean that it loses billions of searches every month — and that’s a lot of revenue down the drain.