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.

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.'