Despite their complicated relationship, Apple (NASDAQ:AAPL) receives over $1 billion a year from Google (NASDAQ:GOOG), purely as compensation for Google’s position as the default search option on iOS devices. This number comes from Scott Devitt in a recent Morgan Stanley report called “The Next Google is Google.”
This may not seem like much, considering the fact that Apple made $13.1 billion in profit last quarter alone, but it’s a solid $1 billion that Apple receives with zero effort. Google, on the other hand, pulled in $2.89 billion in last quarter. The company’s agreement with Apple ensures massive amounts of traffic, at the cost of approximately $250 million per quarter. From 2008-2011, Google also earned about 80 percent of its ad revenue exclusively from iOS devices.
Copyright Wall St. Cheat Street. All rights reserved.