Analysts say Google gives Apple over $1 billion a year thanks to search referrals
Google is an ad company. They’re not a phone company, they’re not targeting enterprise customers, they just want to show people as much advertising as they can so they can rake in the dough. Apple on the other hand, they’re a box pusher. They make things that go inside boxes, and those boxes then need to end up in stores all over the world.
According to a new report from the analyst firm Morgan Stanley, Google gives Apple roughly $1 billion every year because Apple sets Google as the default search engine for all their devices. Because Google gives people a cut of their ad money, and because Apple pushes so many boxes, you end up with an incredibly large number.
Why isn’t Apple partnering with Microsoft so they can use their search engine instead? Let’s be serious, who in their right mind would use Bing? Will Apple ever develop their own search engine? Probably not. They can barely get their customers to use iCloud properly. Deploying server farms in multiple countries to scrape the web just so that people who use Apple devices don’t have to see a Google logo is an investment we’re sure Tim Cook doesn’t want to make.
The bigger question is how much money does Samsung get from Google? Think about it, how many more devices do they ship in any given quarter compared to Apple? Granted, someone who owns a Galaxy Pocket isn’t going to be Googling as much as someone who owns an iPhone 5, but it’s still got to count for something, right?
Let’s also not forget that the largest smartphone market these days is China, and people couldn’t care less about Google over there. All those small players are missing out on millions of dollars a year in revenue, all because of Google’s questionable relationship with the Chinese government.