Asymmetric conditions have rendered Google, Inc. and Apple, Inc. both friends and enemies. The multinational corporation, Google is expected to pay more than one billion USD to Apple. The bribe money will ensure its monopoly as the default search engine on iOS devices like the iPad, iPhone or iPod Touch. Studying the expenditure of Google in the mobile space, Morgan Stanley, a global financial firm, conferred this.
Apple, Inc. is a multinational corporation that sells various consumer electronics, computer software and personal computers. Popular for its MAC products, iPhone and the iPad, the company was established in April 1, 1976. Larry Page and Sergey Brin founded Google, Inc. The company provides Internet related products and services.
Their analyst, Scott Devitt based the figure on Google and Apple, after noting their “frenemies” status. It seems that Apple would reap huge benefits per device if sold with google.com as their default search engine. The cost that Google has already being paying to Apple has been growing steadily every year. There has also been a substantial increment in the number of iOS devices sold. The company is estimated to rake in one billion USD from Google for the privilege of allowing it to be the default search engine.
Similar to the deals with Opera and Mozilla web browsers, this contract also deals with the default position of google.com. The Mozilla Foundation expects around US $400 million in 2014. The reason for this rampant expenditure is that Google understands that more than 80 percent of Smartphone search profits come from Apple Devices rather than Google Android.
What will be their future and their deal would remain to be seen. Apple had already removed Google Maps from the iOS and replaced it with their own. Though it has been reviewed and ridiculed, this future of the deal can only be anticipated. With more than one billion in stake, Apple has another plan with Google. It has incentives in place and given that it does not own a web browser, the deal has the potential be successful.