Apple and Google are enemies and partners at the same time due to asymmetric competition. According to a report from Morgan Stanley, Google could pay more than $1 billion in 2014 to remain the default search engine on iOS. In 2009, Google paid only $82 million for the privilege. Analyst Scott Devitt believes that it is a per-device deal growing every year. For every dollar of revenue Google makes on iOS thanks to advertising and data collection, Apple gets 75 cents from Google. The number is only going to increase in the coming years if iOS sales keep growing. To put it into perspective, the Mozilla Foundation should get $400 million in 2014. Google remains the main contributor to the organization as one can read in Mozilla’s reports. Opera is another longstanding partner, but Morgan Stanley doesn’t give figures for this deal.
About Shelly Palmer
Named one of LinkedIn’s Top 10 Voices in Technology, Shelly Palmer is Managing Partner at Palmer Advanced Media, a technology-focused strategic advisory practice that helps Fortune 500 companies and growth-stage companies with digital strategy, data science, marketing, branding, and business development. He is Fox 5 New York's on-air tech and digital media expert and a regular commentator on CNBC and CNN. @shellypalmer or visit shellypalmer.com.
Like it? Tweet it.
"Will Google Pay Apple $1 Billion to Stay iOS’s Default Search Engine?" by @ShellyPalmer
600,000 subscribers and counting...
We write a daily newsletter featuring current events and the top stories in technology, media, marketing and entertainment.Subscribe