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Report - Google to spend $1B in 2014 to be default iOS search


Tim Ferguson

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Google is to pay Apple more than $1 billion in 2014 to remain the default search engine for iOS devices, according to a Morgan Stanley analyst report seen by TechCrunch.

The report shows this figure has increased significantly from the $82 million seen in 2009, something which analyst Scott Devitt attributes to the deal’s per-device payment model. Google will pay $877 million to Apple this year.

The figures also mean that for every US dollar Google makes on iOS through advertising and data collection, Apple receives $0.75, meaning Google pays more money to Apple than it directly generates from iOS users.

The report also revealed that Google will pay around $300 million to the Mozilla Foundation this year for the right to be the default search on the Firefox internet browser and forthcoming Firefox mobile OS. This will rise to $400 million in 2014.

Apple has been generating increasing revenue from Google in recent years while Microsoft pushes for its Bing search to become the default on iOS device, as it is on Nokia and BlackBerry devices.

Despite using Google’s search, Apple stopped offering Google Maps and YouTube as the default mapping and video service with the introduction of iOS6. Google has since launched standalone apps for the dropped services.

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  • Robert Kegel

    So Google is paying apple to be default search and apple is suing Android OEM’s to obliterate Android. Makes sense. :(

    I have a feeling like apple made their own maps and had an ARM processor developed for them I think they’re working on their own search. I think within the next few years they’ll have their own search. It won’t be as good as Google (or even Bing) but it will be their default search and apple fanboys will use it saying its the best search ever.