Google Pays Apple $1 Billion Per Year for iOS Search Privileges

| + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

Despite their complicated relationship, Apple (NASDAQ:AAPL) receives over $1 billion a year from Google (NASDAQ:GOOG), purely as compensation for Google’s position as the default search option on iOS devices. This number comes from analyst Scott Devitt in a recent Morgan Stanley report called “The Next Google is Google.”

Is Apple now a once-in-a-decade buying opportunity? Click here to get your 24-page Ultimate Cheat Sheet to Apple’s Stock now!

This may not seem like much, considering the fact that Apple made $13.1 billion in profit last quarter alone, but it’s a solid $1 billion that Apple receives with zero effort. Google, on the other hand, pulled in $2.89 billion in profit last quarter. The company’s agreement with Apple ensures massive amounts of traffic, at the cost of approximately $250 million per quarter. From 2008-2011, Google also earned about 80 percent of its ad revenue exclusively from iOS devices.

Devitt further estimates Google will pay $300 million to Mozilla to keep its search engine the default for Mozilla’s Firefox browser.

Don’t Miss: Analyst: Apple is Ready With Dividend News.

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business