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Google to Pay Apple up to $1bn to Remain Default iOS Search Engine

The rivalry between Google and Apple has been well documented, but it seems that the two technology giants can't live without each other.

A recent report from financial analysts Morgan Stanley suggests that the search engine giant is prepared to pay Apple up to $1billion in 2014 for the right to remain the default search engine on their iOS software.

This is a dramatic increase from the $82million Google paid out to Apple in 2009.

To further put the billion-dollar payment from Google into perspective, the Mozilla Foundation, which develops the Firefox web browser, will receive a relatively paltry $400million from Google in 2014 for its search engine partnership.

It is understood that Google's latest deal with Apple is on a per-device basis, and the traffic acquisition cost from Google is somewhat consistent with Apple's yearly iOS unit sales.

Apple has been pushing for bigger monetary deals from Google due to increasing pressure from their main rivals Microsoft; their Bing search engine is now the default engine on Nokia and Blackberry devices, and Microsoft would love to convince Apple to take Bing on board also.

The Google deal remains completely vital to Apple's fortunes. The amount that Apple receives from Google is more than Apple receives in sales of its handsets. But with the smartphone market becoming increasingly competitive, and Samsung now the market leaders, the Apple-Google partnership may be reaching its peak.


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