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Apple gets $100 million a year from Google in revenue share? Microsoft wants iPhone search role?

Posted: , by Alan F.

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Apple gets $100 million a year from Google in revenue share? Microsoft wants iPhone search role?
Recent word that Apple was developing its own search engine were apparently shot down when an anonymous source told Silicon Alley Insider that the Cupertino based firm scores a $100 million payday from Google to allow the company to be the iPhone's default search engine. According to the source, the payout is actually part of a revenue split between the two firms. Google also provides the native Maps application on the phone. When the first gen version of the handset came out, talks between the two tech giants to include Google Maps took only 2 weeks. Once GPS was added to the picture with the iPhone 3G, negotiations took 6 months. "Google wanted access to all sorts of data from the maps, but Apple didn't want to give it up, according to this person," the report said. The report also follows word that Microsoft and Apple were talking about ways to get the former's Bing search tool to replace Google on the iPhone.

Competition between the two companies led to the resignation of Google CEO Eric Schmidt from Apple's Board in August. Google's Android OS and Chrome OS are challengers to the iPhone and the Mac OS X. Apple last summer bought Google Maps competitor PlaceBase and sought to hire an employee who could take the iPhone Maps app to the next level. December's purchase of Quattro Wireless has now put Apple in the game of mobile advertisements. Taken all together it would truly appear that Apple and Google are each trying to grab a bit of each other's business. So the question is, will a $100 million annual payout be enough incentive for a company that had over $15 billion in revenue last quarter, to leave well enough alone? Apparently not. According to a new story by the Silicon Alley insider, Microsoft has a "high" chance of getting the search spot on the iPhone. The story quotes a report by Wall Street analyst Sandeep Agarwal at Collins Stewart who says that Microsoft is "laser focused" on search.
The Redmond based company told the analyst that for the right economics, Microsoft would want to win the search deal for the iPhone. And by "right economics" they probably mean north of $100 million.

source: SiliconAlleyInsider ($100million payout), SiliconAlleyInsider(Microsoft wants iPhone search)

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posted on 20 Oct 2010, 01:45

1. Mateo8326 (Posts: 472; Member since: 15 Jul 2009)

Wow go Apple iphone goes to show what phone is still number one if $100million is laid on the table

posted on 13 Feb 2010, 13:15

2. iHateCrapple (Posts: 734; Member since: 12 Feb 2010)


posted on 14 Feb 2010, 13:17

7. SamTime (Posts: 253; Member since: 07 Nov 2009)

Goes to show that you, Mateo, have once again COMPLETELY missed the point of this article. It's not about the iPhone being #1 or #10. $100 million is arbitrary unless you compare it to other companies share of revenue. What if for example Verizon got $200 million for using Bing as the default search for their Blackberrys? That kinda made ur penis shrink there didn't it? Instead, there's a particular dynamic in play here. Former "allies" are now direct competitors (could be very bad for Google honestly). Former enemies are now trying to play nice. Apple is leveraging one company's services against another to gain more revenue AND to stick it to the other.

posted on 13 Feb 2010, 13:27

3. rwolf1984 (Posts: 532; Member since: 06 Jun 2009)

Idk how Mac Addicts are going to feel about using a Microsoft product. . .lol. . .Google has been my primary source for search for years and years. MSN.com has a lot of great content, but MSN/Bing hasnt been able to lure me away. I have notices that the Bing maps are more accurate then the Google for my area. . .

posted on 13 Feb 2010, 14:50

4. Dadler22 (Posts: 161; Member since: 11 Dec 2008)

bing search also has less crap to sift through.

posted on 13 Feb 2010, 15:16

5. iceman23 (Posts: 31; Member since: 21 Sep 2009)

I hate google phones but not google search. I (and apple fan boyz everywhere) hate bing more than google. Although google is apples main competitor, googles search engine is number one with apple users. Unless Microsoft would counteroffer significantly higher than googles 100 million i dont see iphones "binging" any time soon...

posted on 13 Feb 2010, 17:30

6. Kiltlifter (Posts: 742; Member since: 11 Dec 2008)

Bing VS Google is basically like comparing oranges and grapefruit. Bing search is for more finite info, with less options. Like say I wanted to know the price of an iPhone. If I search Bing: iPhone price. I will get links and pictures with prices and direct links to buy, so I coud purchase an iPhone via ebay or amazon directly thru Bing and even get some cashback for buying from Bing, much faster. Google would give me tons and tons of links... that's it. I would have to click the one and buy it that way. On the other hand.... Say i was interested in looking random data. If I typed "28-662 law" into bing: many of the links are the same thing, not much diversity. Into google: i get more diversity, so i can sort thru what i am looking for. If I want specifics, I use bing. If i want more broad data becuase I am not sure what I am searching for, I use google.

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