Wed, 13 Feb 2013 16:21:12 GMT | By ANI

iOS’ search engine: Google to pay Apple $1 billion

Google will pay Apple $1 billion next year to keep its position as the default search engine in iOS and keep rivals away


iOS’ search engine: Google to pay Apple $1 billion (© Reuters)

Sydney: Google will pay Apple $1 billion next year to keep its position as the default search engine in iOS, a newspaper  report has claimed. The financial services firm came to the figure in a report titled “The Next Google is Google” after taking a closer look at how Google makes and spends money in the mobile space.

Morgan Stanley analyst Scott Devitt based the figure on the fact that Google and have a deal in place which sees Apple reap a certain amount of money per device sold with Google.com as the default search engine, the Age reports. Devitt estimated the cost Google has been paying to Apple per device has been growing year-on-year and that so too has the number of iOS devices Apple has sold.

Because of this, he estimated that Apple would in 2014 be raking in about $1 billion from Google for the privilege of keeping Google.com as iOS's default search engine ahead of rivals Bing and Yahoo. According to the paper, the deal Google has with Apple is similar to one it has with the makers of the Opera and Mozilla web browsers, which both have Google.com as the default search engine.

Morgan Stanley reported the Mozilla Foundation is expected to get $400 million in 2014 in its deal with Google, the paper said.

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