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Google will pay Apple $1B a year to be default search engine on iOS

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 basisdeal 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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2 Comments on “Google will pay Apple $1B a year to be default search engine on iOS”

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  2. Dromoderdum March 12, 2013 at 7:34 pm #

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