Google Pays Apple to Remain Default iOS Search Engine
Reports state that Google is paying Apple $3 billion USD to remain the default search engine on all Apple products. Three years ago, Google paid Apple $1 billion for the same favor. Hypebeast points out that Bernstein analyst A.M. Saccoaghi Jr stated-
“Court documents indicate that Google paid Apple $1B in 2014, and we estimate that total Google payments to Apple in FY 17 may approach $3B. Given that Google payments are nearly all profit for Apple, Google alone may account for 5% of Apple’s total operating profits this year, and may account for 25% of total company OP growth over the last two years.”
According to Bernstein, Google perhaps won’t pay Apple licensing fees if it is sure the search engine is so popular that Apple will not include another option.
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