Apple and Google have been competing with each other since the induction of both the firms and they have also been generating revenue through each other. A new report by Morgan Stanley has stated that Google could pay $1 billion to Apple in 2014 to remain the default search engine on iOS. Google had earlier paid $82 million in 2009 to procure the same benefit.
It has been Apple’s gain also because for every $1 Google makes through the iOS, the firm is required to pay 75 cents to Apple. Google generates revenue through the iOS with the help of advertising and data collection. With iOS sales increasing with everyday the price of the deal is also bound to increase with time.
Apple has been generating revenue from Google over the time and in the economy which drives a cut-throat competition, profit is the major difference. Google reportedly pays more money to Apple than it directly generates from iOS users, but user data guarantees the money’s worth.
Microsoft has been pushing Bing towards Apple to make it the default search engine, but their attempts have not generated any results yet. Bing is currently the default search engine provider on Nokia and BlackBerry devices. With Samsung producing large sales numbers, the Google-Apple deal could reach new heights.
With the smartphone market evolving with the entry of new players and novel offerings from the old players, this deal could go on either side. Do you think Google should pay $1 billion to Apple for retaining its search engine on iOS?