Tuesday, February 12, 2013

Google Could Pay More Than $1 Billion to Remain with iOS

According to a Morgan Stanley report, Google could pay more than $1 billion in 2014 to remain the default search engine on iOS. In 2009, Google paid only $82 million for the privilege. Analyst Scott Devitt believes that it is a per-device deal growing every year.

Thanks to advertising and data collection, Apple gets 75 cents out of every dollar earned in revenue from Google. The number is only going to increase in the coming years if iOS sales keep growing.

To put it into perspective, the Mozilla Foundation should get $400 million in 2014. Google remains the main contributor to the organization as one can read in Mozilla’s reports. Opera is another longtanding partner, but Morgan Stanley doesn’t give figures for this deal.

With Microsoft's Bing service remaining the default for Nokia and Blackberry devices Google needs to watch the shares very closely as more and more users demand multiple options for providers. Apple isn't likely to shy away from a cool billion or two but everyone has strategies in the world of business.

Daniel, Jedi Editor
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