Google pays Apple a large sum of money to be the default search engine on the iPhone. According to Bernstein’s Toni Sacconaghi, Apple receives about $8 billion a year just so Google can be the default search engine on iOS devices like the iPhone. This generates plenty of advertising revenue for Google, as much as $25 billion a year from iOS, and the money that Apple receives from the search firm goes right to its bottom line. So why should either firm make a change?
Analyst says Apple should buy DuckDuckGo
Sacconaghi says that such a purchase can be made by Apple for less than $1 billion. That would amount to less than one week of Apple’s cash flow. Calling it a “really tricky three-legged stool,” he notes that the revenue it receives from Google equals more than 10% of Apple’s operating earnings and reiterates how owning a search engine could provide Apple with some insurance.
Besides DuckDuckGo, Yahoo Search could be pried away from Verizon for the appropriate amount of money. Yahoo Search owned a 3.62% market share in the U.S. last month; however, it would surely be more expensive for Apple to buy that DuckDuckGo and the latter’s policy privacy would dovetail perfectly with Apple’s.