As everyone knows, Apple and Google are enemies and partners at the same time due to asymmetric competition.
Next year, in 2014, Google will pay Apple about $1 billion to be the default Internet search provider on all iOS devices, including the iPhone and iPad, according to a report from Morgan Stanley analyst Scott Devitt, and that figure is expected to increase over the next few years.
Google only paid $82 million for the same privilege in 2009. Devitt suggests that Google and Apple only have a “pay-per-device basis” deal rather than a revenue sharing deal. So for every $1 of search revenue Google makes on iOS, Apple gets 75 cents. This is to simplify accounting and allows Apple to collect its payment up-front.
Devitt predicted that by the end of this decade Google will pay close to $6.8 billion a year for traffic acquisition.
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