Google Search is the default for the mobile Safari browser on all iPads and iPhones. Google CEO Sundar Pichai is reaching deep in his pockets to keep it that way.
Google is not content to just dominate the search engine market on desktops. The group from Mountain View also wants Google search to dominate on mobile devices.
Google search on Android and iOS
From the perspective of Google, the overall picture is already positive. Finally, Google search is already set on all devices with Android operating system by default.
An analyst of the investment and consulting firm Bernstein, Toni Sacconaghi, has found that Google is transferring $3 billion to Apple yearly in order to remain the top mobile search platform.
Why the $3 billion payments are money well-spent
You might be asking yourself if it is really worth it for Google to spend so much money just to be Apple’s default search engine.
The answer is: of course – and there are several reasons for this. First of all, Google takes an undisputed monopoly in mobile search through this investment.
With all Android and iOS devices, Google is handling more than 90 percent of all mobile search queries. A serious competitor (Bing, Yahoo, Yandex) does not exist globally.
In addition, iPhone and iPad owners are a highly attractive target group. Half of Google’s mobile search generated revenue is generated by Apple users, even though there are significantly more search requests from Android devices.
Apple also benefits from Google search
And the deal isn’t just good for Google. A few kilometers away in Cupertino, the deal is also making Apple happy.
Apple is providing its users with an excellent search engine, without paying for it (in fact, the extra $3 billion per year should help polish up Apple’s balance sheet).
Based on calculations by Bernstein analyst Sacconaghi, Google would be responsible for five percent of the total Apple profit this year. The share of profit growth compared with the previous year is again significantly higher at 25 percent.
The deal with Google search is therefore a win-win situation for both sides.