Google is paying $1 billion per year to Apple

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Google pays Apple almost $1 billion per year to be the default search engine on Apple’s iOS, according to Scott Devitt Morgan Stanley analyst. The current amount that Google is paying to Apple may rise in the coming years. The amount is more than a number of companies earn over a year.Apple on the other hand is doing nothing in the deal but just getting a huge profit from Google.

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Apple and Google deal revolves around per-device deal rather than the conventional revenue sharing deal,  Devitt reported in a report  titled The Next Google Is Google. For every $1 of revenue through search Google makes on iOS, Apple gets almost 75 cents.

In current year the revenue will equate to almost $1 billion. As compared to Apple’s quarterly profit of $13 billion this amount seems to be pretty small one but it’s a pretty good sum just for allowing Google as the default search provider on iOS. Moreover,Apple is expected to rise the figure in the years ahead.

According to DevittIt’s it is a good deal for Google too. As Google along with Apple is dominating the mobile market and paying $1 billion a year for a monopoly.

 

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