Google will pay an estimated $3 billion to Apple to ensure they keep Google as their default search engine on iOS devices.
Apple has removed YouTube and other few Google apps from the iOS home screen. Apple and Google have always been tough competitors in the mobile world.The default search engine for Safari mobile is always Google. Google pays a huge sum to Apple to make this deal last long. Apple has always trusted Google and not the Bing or Duck Duck Duck Go. The best one-word reason for this is Google is the most trusted search engine in this planet and no alternative could beat this history.
According to analyst A.M Sacconaghi Jr Google will pay $3 Billion to Apple to remain in its position on iOS devices. “Court documents indicate that Google paid Apple $1B in 2014, and we estimate that total Google payments to Apple in FY 17 may approach $3B,” Bernstein analyst A.M. Sacconaghi Jr. said. “Given that Google payments are nearly all profit for Apple, Google alone may account for 5% of Apple’s total operating profits this year, and may account for 25% of total company OP growth over the last two years.” Said CNBC reports.
This seems to be a fair business deal for both of them. Google would not avoid this deal as Apple products are said to contribute 50% to Google’s income from mobile search.
Stay updated with latest happenings of tech world on the go with Technobugg App, on Android and Windows.
Source: CNBC