Google plans to pay Apple $1b to become default search engine

March 11, 2012 - 16:41 AMT

PanARMENIAN.Net - Google is planning on parting with $1 billion to ensure that it is the default search engine used on all Apple products. This will include the iPhone, iPad and also Mac systems, Macquarie analyst Ben Schachter wrote in a note, according to gadgethelpline.com.

Schachter believes Google searches on Apple devices resulted in $1.3 billion in gross revenue. He believes Google has a 75% traffic acquisition cost associated with that revenue. As a result, Google only gets $335 million in net revenue from searches on iOS and Safari, Business Insider says.

?Google generated ~$1.3bn in gross search revenue through default search placement on Apple devices,? Schachter wrote. ?In other words, this $1.3bn of search revenue ($335m net search revenue) in 2011 is at risk if Apple moves away from Google. $335m represented ~1% of net Google.com search revenue. Notably, mobile/Apple revenue is among its fastest growing revenue drivers.?

Source: http://www.panarmenian.net/eng/news/98164/

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