One fact that seems to be well known is the competition between Apple and Google. If you aren’t aware, Google owns the popular phone operating system Android; And it seems as if the iPhone is in competition with hundreds of Android phones now-a-days. Most phones other than the iPhone run some type of Android OS, which gives consumers a wide variety of choices between phones. But it finally seems as if Google and Android have decided to make peace by doing doing some side-business.
During the year of 2011 Google paid Apple a total of $1 billion to be the default search engine on Safari. This means all iPod,iPhone, and iPad users are by default sent to Google when a web-search is made through the navigation bar. While users can still switch between other search engines such as Yahoo,Bring, etc, its a given that more than 95% of users stick with the default search engine. With the millions of iOS devices sold each year, its unimaginable the amount of hits Google is sent through searches.
The $1 billion estimate was provided by analyst Ben Schachter, who also estimated that Google see’s 1.3 billion in revenues as a result of being the default search engine. This means that Google only see’s around 300 million in profit. This isn’t very much to Google, but it sure does bring them an enormous amount of traffic.
But in the downturn, Google shouldn’t have to worry about being replaced. This would be a unintelligent move by Apple taking into consideration that Google is the most used search engine on the internet.
What do you think about Google’s deal with Apple?