Google and Apple are like a divorced couple who have been forced to continue to share the same house. Though we have seen them fighting each other at different times, they’re still reliant on each other. A recent news proves it well. Recently, investment firm Morgan Stanley has created a buzz by reporting that Google may pay Apple at least $1 billion next year to remain the default iOS search engine.
Google is already the default search engine on iOS. To secure the privilege Google paid Apple $82 million in 2009. At that point there weren’t hundreds of millions of active iOS devices. Now, the scenario has changed, and so has the total customer acquisition cost. According to estimates by Morgan Stanley, Google may pay Apple at least $1 billion (£629 million) next year to be the default search engine on iOS.
Social networking giant Facebook‘s analyst Scott Devitt believes that the price hike is due to a “per-device deal,” growing every year. Undoubtedly, Google earns its own revenue from each search, which is why it can pay such a hefty sum.
Thanks to: Techcrunch