Why Google Pays Apple $1 Billion


Why Google Pays Apple $1 Billion

Bangalore: To retain its title as the default Search Engine in iOS, Google will reportedly paying Apple one billion dollars in the following year.

Due to an unstable competition, the two tech companies are partners and enemies at the same time. According to the report titled, “The Next Google is Google”by analyst Scott Devit, the total traffic acquisition cost is approximately proportional to the number of iOS unit sales. The financial services firm finally ended up on the figure after taking a closer look at how the search giant is made and spent money in the mobile space.

The deal Google has with Apple is similar to one it has with the makers of Opera and Mozilla web browsers, as both of them have Google as the default search engine.

As per Mozilla’s reports, Google remains as the main contributor to the Mozilla Foundation and the company should get $400 million in 2014. Morgan Stanley gives figures only for this deal but not for Opera who is another longstanding partner.

For the past few years, Apple received more revenue from Google as Microsoft has been pushing Apple to make Bing the default search engine.

Read more: 8 Real Reasons Why Apple Is Better Than Samsung, Google And Microsoft