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Google is willing to pay $3billion to Apple so it stays as default search engine on iOS

If you think Google and Apple are big time competitors, think again because these two seem to be sharing a partnership worth billion of dollars, as reports have it, Google is paying Apple billions of dollars to be the default search engine on IOS.

Google’s licensing fees make up a large bulk of Apple’s services business- Bernstein

According to reports by CNBC, investment research firm Bernstein says Google will pay Apple about $3 billion this year, up from $1 billion just three years ago, and that Google’s licensing fees make up a large bulk of Apple’s services business.

A.M. Sacconaghi Jr., an analyst with Bernstein was quoted as saying; “Court documents indicate that Google paid Apple $1B in 2014, and we estimate that total Google payments to Apple in FY 17 may approach $3B.” “Given that Google payments are nearly all profit for Apple, Google alone may account for 5% of Apple’s total operating profits this year, and may account for 25% of total company OP growth over the last two years.”

apple_google_$3billion dollars

This is a good business deal for both companies; after all, Google secures most of its revenue from ads that come from Apple mobile ads and  Apple gets a huge cash from Google without making so much effort as Google keeps pumping in the cash to stay where it is.

One question that can not be ignored however is; what if Google is not Apple’s “default search engine”?

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