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Guess how much Google is paying Apple this year to remain on the iPhone

By Cookie Monster - on 16 Aug 2017, 2:00am

Guess how much Google is paying Apple this year to remain on the iPhone.

Google is paying Apple a lot of money to remain the default search engine on the iPhone and iPad this year.

According to research and brokerage firm Bernstein, Google is expected to pay Apple a whopping $3 billion this year. This is a huge increase from the $1 billion Google paid Apple three years ago! The $3 billion licensing fees will contribute a huge portion to Apple's service business, which generated $7.3 billion n revenue in the recent quarter. 

"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," Bernstein analyst A.M. Sacconaghi Jr. said. "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."

As Apple's iOS devices contribute about 50% to Google's mobile search revenue, it is unlikely that Google will discontinue the licensing deal as both companies will stand to benefit from this partnership. 

Source: CNBC

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