Being the determined search engine of iOS devices has a price and according to research firm Bernstein, this could be 3 billion dollars.
That’s what the firm says Google will pay Apple to remain the default Safari browser on iPhone, iPad and iPod Touch. A figure that multiplies by three the payment of billions that the great G paid only three years ago.
This agreement has a positive side for Google, but also a negative
The positive thing is that according to their analysis, approximately 50% of advertising revenue from the search engine comes from iOS devices, so Google would ensure that the vast majority of users of iOS devices. Not renewing the agreement would open the way for other search engines to bid and get established as the default browser on Apple devices.
The downside is that the agreement rate seems to have increased at a very high rate. This makes a big impact on Google’s bottom line and maybe the company could try to save money.
The Mountain View company may decide to trust its brand and not renew the agreement at some point by relying on users to set their browser back to default manually (something very simple from the Safari settings). It would not be unreasonable considering that the user experience obtained in other search engines does not come close to what Google achieved; At least in Western markets.
For Apple, the agreement with Google is very sweet. Except for taxes, the agreement represents the pure benefit for the firm and according to analysts, this amount would represent around 5% of the total profits of the services division of the Cupertino firm.
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Nicolas Parker says
Great news!! As you mentioned it has positive as well as negative effects too. Google is also upgrading itself, recently I have read a news that GOOGLE POWERS UP MOBILE SHOPPING RESULTS. It means that it gives upgraded versions of all the products.