Google May Pay Apple Over $1 Billion In 2014 To Be Default Search Engine On iOS

Posted Feb 12, 2013

According to a new report by Morgan Stanley, Google may pay Apple more than $1 billion in 2014 to remain as the default search engine on iOS.  Google paid only $82 million to be the default search in 2009 for the same agreement.  Morgan Stanley analyst Scott Devitt believes that the deal is based on a per-device basis.  And as we all know, the number of iPads, iPods, and iPhones sold has grown astronomically between 2009 and 2013.  For every dollar of revenue that Google makes from iOS from advertising and data collection, Apple receives around 75 cents from Google.

Based on the same ratio, the Mozilla Foundation may get as high as $400 million from Google in 2014 to remain as the default search provider for the Firefox browser.  Microsoft may get into a bidding war with Google next year to make the default search on iOS.  Currently is the default search on BlackBerrys and Nokia phones.

Perhaps Google will not make a bid at all considering the number of Android devices that are out there now.  Samsung is now the dominant manufacturer and Google is the default search for Android devices.  Android and iOS keep going back-and-forth as the leader mobile operating system every quarter depending on which measurement company you believe.

[Source: TechCrunch]