Google's (GOOG) Cost for Prime Search Spot on iOS Keeps Going Higher (AAPL)

February 12, 2013 9:46 AM EST Send to a Friend
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Google (Nasdaq: GOOG) might pay Apple (Nasdaq: AAPL) a significant sum as it looks to retain its search presence in one of the most promising mobile markets around.

Morgan Stanley said earlier that Google might need to shell out $1 billion in 2014 to remain default search engine on iOS. That's up from just $82 million in 2009 and an estimated $700 million last year,notes the firm.

For every one dollar Google makes on iOS, Apple will take 75 cents.

Competition always looms in the form of Microsoft (Nasaq: MSFT). Part of the reason of the rapid acceleration was that Microsoft has been pushing up bids to get its Bing search as the default on iOS. Bing is currently the go-to on devices from Nokia (NYSE: NOK) and BlackBerry (Nasdaq: BBRY).

Google might be paying more than it takes in for the right on iOS, but data collection is key for the search giant.

The TAC rate Google pays per iOS unit will increase by about 20 cents annually to $4.40 by FY19, according to Morgan Stanley.

In early trading, Google is about flat while Apple is down 0.3 percent.


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