Google is paying more than 300 billion yen a year, tripling in 3 years for search to Apple Why is Winwin?
Google developing Android is a rival of Apple that develops iOS, but it is reported that Google has paid an unprecedented contract of 3 billion dollars (about 330 billion yen) in order to become the default search engine of iOS It is. Nonetheless, this contract is a win-win relationship for Google · Apple.
Google paying Apple $ 3 billion to remain default search - Bernstein
Alliance · BernsteinAnalyst AM Sacconaghi Jr. said, "The estimated license fee paid to Apple for Google to designate as the default search engine for iOS is $ 3 billion (about 330 billion yen) per year" In a report for investors.
IOS browser Safari's search engine can be chosen from Google, Yahoo, Bing, DuckDockGo, but by default "Google" is checked and you will use Google as a search engine. Of course, it is possible for users to specify a search engine other than Google, so Google has paid over 300 billion yen annually to Apple to get this default search checked.
"The amount we paid to Apple to promise the iOS's default search engine in 2014 was $ 1 billion (about 110 billion yen)," as it is clear from the court record, The contract fee jumped three times in three years.
Clearly Apple made more than 110 billion yen by using Google search for iOS - GIGAZINE
For Apple, the cost of designating a search engine is nearly zero, so $ 3 billion will be a full profit, accounting for 5% of Apple's operating profit in 2017, and for the past two years Sacconaghi says that it may account for 25% of sales growth.
For Apple, it seems like a millet contract in the wet hands, but Google also said that the advantage of default designation of search engine is great for Google. According to Sacconaghi, about 50% of Google's mobile search revenue is from iOS devices, and even if you earn $ 3 billion (about 330 billion yen) in mobile search revenue, the huge license agreement It seems that it is a win-win relationship for both Google and Apple.
In mobile terminal OS, Google and Apple are in perfect rivalry relationship between Android and iOS, but it is a good example of the flexibility of high-tech enterprises that they have good relationship if they benefit each other.