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How Much Google Pays Apple to be the Default Search Engine in Safari?

By on March 13, 2012

According to a note by Macquarie analyst Ben SchachterApple made US$1 billion off Google last year by having it as the default search engine in Safari. He observed that Apple seems to be moving away from Google Maps, which doesn’t affect Google much. But if Apple decides to stop using Google for search, it could be a major blow to Google, since the iPad appears to be gaining a lot of popularity around the world. If the iPad overtakes the PC in the next five years and it becomes the preferred method that people use to make their search, then Google will be in trouble.

Schachter believes that Google searches on iOS devices resulted in US$1.3 billion in gross revenue, and Google has a 75% traffic acquisition cost associated with that revenue.This means that the Internet and software corporation only gets US$335 million in net revenue from searches on iOS and Safari.




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