Google reportedly paying a substantial fee to be the default search engine on Apple devices with a $ 1 billion paid stating.
Although its ongoing legal battles, new reports been suggested search giant Google is paying to its sour opponent Apple as much as $ 1 billion (£ 638,240,000) to be the default search engine in the market for the company dominates hardware ranges.
Coverage of the size of the Mac as well as the scene of the leading smartphone market Apple iPhone and the iPad tablet that Apple dominates, industry analysts have suggested that the choice of Apple’s default search option comes with a hefty price tag for Google.
In the wake of reports that Apple is to move away from Google Maps to introduce its own proprietary mapping software, Macquarie analyst Ben Schachter suggests that Apple’s current offerings with Google could amount to the rate of des-parallel .
In spite of the strong share Schachter has suggested Google continues to gain significant benefit from placement in the Apple devices with an annual $ 1.3 billion gross revenue generated by the operation.
“Google generates ~ $ 1.3 billion in gross revenue search through the default search placement on Apple devices,” said Schachter. ”In other words, $ 1.3 billion of search revenue ($ 335 million net income of search) in 2011 is at risk if Apple moves away from Google. $ 335 million represents about 1% of net income Google.com search. in particular, mobile / Apple is one of the fastest revenue growth of income of their drivers. ”