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# Report says Google will pay $3 Billion to Apple to be the default iOS device search engine

September 7, 2017 by Tushar Imade / 0

Google will be paying a sum of $3 Billion to Apple to continue as the default search engine on its iOS. Bernstein, an American research and brokerage company, states that the sum has amplified 3 times, to be precise, from $1 Billion in 2014 to $3 Billion this year. On the basis of that rough estimation, Google may account for 5% of total operating profits of Apple this year. Apple has been hyping its services business as a rapidly growing sector of the company, mentioning that it anticipates segment alone will be as huge as a Fortune 500 company soon.

According to the research company, Google may be diffident to let go the licensing deal. This is because the market has several Apple devices and if Apple determines to not make their search engine as the default one on iOS devices, it can be a loss for them. Around 50% is contributed by iOS devices to the mobile search revenue of Google, the company may be reluctant to walk away from the agreement.

Thanks to court records, it certainly unveiled that Google compensated Apple a bulky amount to keep it as the default search engine on the iPad and iPhone.

A.M. Sacconaghi Jr., Bernstein analyst, said, “Court documents suggest that Google compensated Apple $1 Billion in 2014, and we approximate that total Google compensations to Apple in FY 17 may come up to $3 Billion. Providing, Google payments are almost all profit for Apple, thus, Google alone may hold for 5% of total operating profits of Apple this year, and may hold for 25% of entire OP growth of the company over the past 2 years.”

Apple is all set to declare updates to its iPhone 7 Plus and iPhone 7 in the outline of the iPhone 7s Plus and iPhone 7s coupled with the 10th-anniversary edition in September of the device tipped to be the iPhone 8. iPhone 8 is projected to present a prominent new bezel-less design, 3D face unlocking, wireless charging, updated cameras with AR features & 3D sensing abilities, IP68 waterproofing, and an OLED edge-to-edge display of 5.8-inch.

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