Google and Apple the two most competitive company’s in the mobile game are said to be in a deal where Google is paying billions of dollars to Apple in order to remain the default iOS search engine according to a post by CNBC.
A citing investment firm Bernstein states that Google will pay $3 Billion dollars of money to Apple as a part of the deal. The company also paid $1 million dollars to Apple almost three years ago in the same deal. This will give a huge jump to Apple in terms of its total income.
According to one of the Bernstein analyst “Google alone may account for 5% of Apple’s total operating profits this year, and may account for 25% of total company OP growth over the last two years”.
The deal is expected to be profitable for both the companies as “about 50%” of Google’s income comes from mobile search done from iOS product’s.
In this deal Apple is actually getting to earn a ton of money without doing actually nothing as it would not take much time and money of Apple to make Google the default search engine on all iOS devices.