Google pays Apple billions of dollars to be the default search engine on iDevice

In 2016, while suing Google for copyright infringement, Oracle's lawyers revealed that Google paid Apple $ 1 billion in 2014 to keep its search engine default. on the iPhone's Safari browser.

According to a new analysis - based on third-party market research, Apple's licensing revenue and Google's pay for search engine placement - conclude that this number will jump to $ 3 billion. in 2017.

'Google's willingness to pay Apple to be the default search engine proves the power of iOS', Toni Sacconaghi and Daniel Chen came from Bernstein in their report last week.

Google pays Apple billions of dollars to be the default search engine on iDevice Picture 1
iOS has a big attraction, making Google ready to pay for the default browser

The report shows that market research shows that Google's mobile revenue has tripled, from $ 16 billion in 2014 to $ 50 billion in 2017.

In the past two quarters, Apple's service revenue has also increased by $ 2.4 billion annually with licensing revenues of at least $ 500 million, meaning a $ 1 billion increase this year. Analysts say Google can account for up to 5% of Apple's operating profit, which has also accounted for 25% of profit growth over the past 3 years.

The report said this could be a double-edged sword with Apple because when there are more users, they also get more licensing revenue through advertising applications. The report ended with a warning: 'Google finally needs to decide that its search engine position is strong so there is no need to pay to be selected by default on the browser.'