News

Google Could Pay Apple More Than US$1 Billion To Remain Default iOS Search Engine

Google Could Pay Apple More Than US$1 Billion To Remain Default iOS Search Engine

According to a new report from Morgan Stanley, Google could pay Apple more than US$1 billion in 2014 to remain the default search engine on iOS. In 2009, Google paid only US$82 million for the same privilege.

According to the report titled “The Next Google Is Google” and the table below, Google pays Apple a certain amount for every iOS device sold - this is called the Traffic Acquisition Cost (TAC) rate. Looking at the table, in 2009, the TAC rate per iOS unit was US$2. This increased to US$3 in 2011, and has steadily increased since then, hitting US$3.3 this year, and set to increase to US$3.5 next year. At Apple's current projected growth rate, Google will have to pay Apple US$2 billion by 2018.

In his report, analyst Scott Devitt states that it's actually a pretty good deal for Google. Devitt estimates that with Apple and Google's own Android platform combined controlling about 95% of the mobile market, "paying US$1 billion a year for a monopoly on the most lucrative online business in the world is a no-brainer."

Google is also the default search engine on Apple’s Safari for Mac, and is also part of Safari’s contextual menu (“Search with Google.”)

Source: Business Insider

All News Categories

News for Past 12 Months

Subscribe to HWZ Here!

Subscribe now to receive latest tech news, articles and promotions straight to your inbox!
 
 
By signing up, you indicate that you have read and agreed to the and .