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.