Apple Will Earn $1 Billion From Google Alone In 2014: Report

Being the default search option on iOS ain't cheap.

Frenemies. Can't live without them in the tech biz. In a classic example of this it now looks like Google will pay Apple a cool billion dollars, at least, to be the default search engine rather than other options, like Bing, on iPhones and iPads in 2014.

The data comes from a Morgan Stanley analyst who's been looking into the fees Google pays. In 2009 the same deal cost Google just $82 million, but at that point there weren't so many hundreds of millions of iOS devices in the wild—and the deal is likely on a per-device basis. Google of course earns its own revenue from each search, which is why it pays Apple such hefty sums. Recently Apple device sales have been surging in the U.S. and elsewhere, which means the fee could soar still further in future.

[Image: Flickr user Tsahi Levent-Levi]

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  • jordy corvers

    wouldn't it be cool if in after 4 years from now google will be making a loss on its phones etc. and decides to quit this market focusing only on search. then Apple and google can really work together each doing what they do best. and in 10 ears.. at this rate apple might be able to BUY google. now I know how an analyst feels. looking into my chrystal bal is fun!