Though the two companies may not be best friends, the relationship between Google and Apple is one that won’t soon be dissolved. According to a report, Apple brings in a profit of $1 billion a year due to an agreement between the two tech giants. What does Apple do on its end? It makes Google the default search engine on iOS devices. This helps not only Apple, as it has little effort to earn the money, but also Google in that its search engine is being used by an ever increasing user base.
Now, it seems like Google may not need this, but in fact 80% of mobile ad revenue from 2008 to 2011 was made from iOS devices. Paying $250 million a quarter ($1 billion split in four) isn’t really that bad of a deal for the Mountain View company. Apple doesn’t really need the money, as it made a crazy $13 billion last quarter. However, who wouldn’t take $1 billion for something as simple as making Google default? Exactly.
What do you think? Is this unfair of Google to pay companies? Or is this just good business? Let us know in the comments, or tweet me @TiP_Kyle.