Analyst: Google’s default search deal worth $3 billion to frenemy Apple

As Apple and Google became direct competitors following the rise of Android, industry observers wondered if (and anticipated that) someday, Apple would cease to offer Google as the iPhone’s default search engine. And while Cupertino has diversified away from Google, via Spolight Search, Siri and Bing, Google is still the dominant search tool on the iPhone.
Now, a Wall Street analyst, Toni Sacconaghi of Bernstein, speculates that Apple may collect as much as $3 billion in “services” revenue this fiscal year from Google. Extrapolating from an initial 2014 court disclosure that Apple received $1 billion from Google as traffic acquisition costs (TAC) for default search placement, the Bernstein analyst estimated a growth curve from there.
The belief is that the structure of the relationship between Google and Apple is a revenue share based on paid clicks generated by iOS devices — perhaps on top of a fee. Sacconaghi was quoted by CNBC saying, “Given that Google payments are nearly all profit

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