How much Google pays Apple to get its search onto iOS devices

By , Mar 10, 2012

While it’s true that users can switch between Google, Bing and Yahoo when deciding which search engine to use in Safari on iOS, it’s debatable as to whether anyone does actually change it. We’re going to put our money on the percentage being on the low side!

That’s why being the default search option on iOS is so important. If you’re the one chosen out of the box, then the chances are you’ll be the one that gets the vast majority of hits from users. Right now, that default choice is Google, and they pay handsomely for the privilege according to Macquarie analyst Ben Schachter.

Just how handsomely, you ask?

According to Shachter, Google pays Apple a cool $1 billion to be the default search option in Safari across a range of devices. Yokes.

In return for that outlay, Shachter believes that Google sees around $1.3 billion in revenues, which considering the outlay may not seem much. As is often the case with Google though, things aren’t that simple. While the money is obviously welcome, it is the data that the search giant can collect on all those extra users that is the most valuable part of this transaction, and one which Google will not want to see go away.

Apple, for its part, probably doesn’t want to have to rely on the inferior Bing or Yahoo, either.

[Business Insider]

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  • Anonymous

    Lol there still making 300 million, seems like a smart move.

  • Anonymous

    Did you mean “Yikes” instead of “Yokes”. Or maybe you just meant “Yokes”. *Goes to thesaurus.com” :s

    • http://www.iDownloadBlog.com Sebastien

      Oliver is British, so I think he uses words that some of us don’t get. Like Yokes! I guess “yokes” is what “yikes” sounds in British English :P

      • Anonymous

        Yeah, haha. But yokes means a bond. Oliver uses some really high-level English which results in posts being very confusing rather than pleasurable to read :s q:

      • Anonymous

        I thought the article was well written and didn’t have any problem understanding it.

      • http://www.facebook.com/profile.php?id=1015090040 Ibz Ali

        I’m British and YOKES is not what we call yikes !! It’s still very much YIKES! Maybe he meant Yoikes? Which is much older than Yikes.
        Lol at this subject.

      • http://www.facebook.com/profile.php?id=1015090040 Ibz Ali

        I’m British and YOKES is not what we call yikes !! It’s still very much YIKES! Maybe he meant Yoikes? Which is much older than Yikes.
        Lol at this subject.

  • http://bookmaggot.com Alan

    Is Bing really *that* inferior?

    • Anonymous

      No, they’re about the same search result wise. Bing’s mobile interface work better than google’s mobile one in my opinion too.

  • Howard Ellacott

    I recently set mine to bing, and although the desktop version isn’t great, the mobile one is much nicer than google.

  • http://twitter.com/pcmedman A

    Is that $1 billion per year?

    • http://twitter.com/kozaa Andrei

      No friend, for one search only, of course! ))

  • http://twitter.com/yercustomer Yer Customer

    That’s surprising. I would’ve thought Apple would be paying THEM. People would bitch like crazy if by default it was some other search engine.

    • Sina

      Did you say that for real ??!! Less users use Google these days (Specially after Privacy Policy changed…)

      • Anonymous

        You got actual facts to back that up/ or are you saying hearsay, last time I checked, Google still tops the Alexa rank worldwide and the US

    • Anonymous

      Me too. I thought that apple would be paying google.

  • Anonymous

    I’m not sure how much I trust the analyst’s opinion. They’re notoriously wrong in the tech sector. I don’t know this guys track record either.

  • Anonymous

    I’m not sure it’s worth it. Sure they make more than they spend, but that’s not the only thing to consider.

    1. Which search engine would Apple choose if they received no money? Apple doesn’t have its own search engine, so they’re most likely to choose the most popular one: Google.

    2. If Google wasn’t the default, would people switch to it anyways? I know I would.

  • Imahottguy

    Perhaps Apple should be wondering how much some users would be willing to pay to get Google’s search OFF of iOS lol.