A Next Generation Blog

Apple to bag $1 billion from Google to make it default search option


Rivalry between Apple and Google is no more a secret. But, we find their strategic moves pretty exciting in comparison. Whenever there is something new from one end, people look for what’s the case with the counterpart. The best part is that there is something to get. So, it’s natural that the companies try their best to avoid each other at their own arena.

But, seems Google is ready to pay a huge amount to be there in Apple’s platform. Apple has been trying to make Google out from its platform. On this context, we want to remind you about the dropping of Google Maps. Now, let’s focus on Google’s way of reply. According to analysts at Morgan Stanley, “The best search engine of the world, Google is going to pay $1 billion to Apple to retain its spot as the default search engine on iOS platform”.

The best cause to appreciate Google is its capability to keep itself sustained as the default search option on iOS. We say so as Google branding was removed from Safari in iOS v4.0.

By the way, this huge amount is never all of sudden. It has happened gradually. The price was comparatively much smaller in the year 2009 with just $82 million in the year. Now comes the question, why occurred this hike? We must inform you that the Google-Apple deal is per device based and it’s natural to happen, when iOS devices are increasing at a fast pace since 2009.

On the other hand, the price per device is also in no mood to stop as well. It was $2 per iOS device in the year 2009. It increased to $3 in 2011 and became $3.2 in the year 2012. The experts think that the process will go on and they estimate it to reach $4 in the year 2017. Through the process, the total payments speculated to be crossing $2 billion after some years. According to the above equation, Apple gets $0.75 per each dollar Google earns.

The other big gainer is the Mozilla Foundation. The company will bag $400 million this year for keeping Google as the default search option on the Firefox browser. Now, it will be silly to mention that Google is the natural search option for all Android based devices. From this you can assume that increase in Android market share means a lot for the Google.

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