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It has been an open secret for a very long time, something almost everyone in the tech sphere knows about it. Google pays Apple to be the default search engine on iPhone, iPad and iPod touch. Well, before we didn’t know the exact number but today it has come to the public view.
According to the court hearing of Oracle vs Google, information came to the pubic view regarding what percentage Google gives to Apple for making it’s search engine default. A cool 34 percent is given to Apple for ad business done via iOS devices to Apple from Google.
The deal between Apple and Google generated $1 billion for Apple in 2014 according to the transcript of court proceedings.
Albeit Tim Cook complaining about the ad business of Google, it does seem to benefit the company he is running.
Google’s ad program generates somewhere around 95-97% revenue of Google, which is almost all of it. So making Google search be the default on iOS devices gives Google a big advantage over it’s competitors.
As the number of internet users grow, Apple share of the ad revenue keeps growing. So this is a win-win situation for Apple.
(Via Bloomberg)
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