Sunday, January 24, 2016

Google paid Apple’s one billion US dollars to remain the default search engine – Gazeta.pl

Google is the default search engine on devices manufactured by Apple. According to the testimony of an employee of Oracle, composed on the occasion of the process with Google came to light , the largest Internet company in the world is paying huge money to maintain this state of affairs. According to the transcripts, which despite the opposition of the two companies for some time been declassified, Google had to pay Apple’s one billion US dollars.

Internet giant does not seem to leave, because parting with Apple could be very painful. According to analyst firm UBS Google if it would not be the default search engine half of the customers of Apple and so again would choose this tool. But the second half would choose the services of competitors – Yahoo, and Bing. For Google, this would mean up to 25% less traffic.

Read also: How Google earned on Android? Billions!

Why amount is so substantial? It’s a kind … commission. Mobile devices have brought Google $ 12 billion in revenue, 75 percent of that amount comes from iOS devices . Google paid one billion US dollars, but earned traffic from Apple devices … about 8-9 billion dollars.

The giant from Cupertino is no way out, he can not “let go” of Apple devices, generate a gigantic portion of its revenue .

Mozilla also got a billion

Google is the leader, though not everywhere. Globally the company there is 90% of the market, Google is aware of the fact that the position of its rivals can at any time increase. That is why paid huge money even when it seemed that his position is threatened. That was in 2008, when by remains the default search engine in Firefox paid one billion US dollars. Three times more than the year before. Media have speculated that mainly out of fear, before offering Microsoft and Yahoo, which also could be put on the table 400-500 million. Google so he wanted to beat the competition.

The situation is a little different if the statistics exclude smartphones – then Google’s share falls to approximately 75%, Bing has a stake of 20%.

Google “abandoned” Mozilla whenever Chrome has reached a high enough share of the browser market. Today, Google’s product selects 47% of Internet users, Internet Explorer is second with a score of 20%, the third in Firefox – it uses 17% of consumers. A recently browser is the number one engine Yahoo. The partnership does not toppled the situation on the market upside down – Yahoo “grown” globally 0 0.5-1%

Microsoft was paying a billion … by yourself

The market search engines, however, is enough powerful that continue to occur on it to enter into new agreements and minor reshuffle. Microsoft, which in the search engine Bing drowned $ 5.5 billion, roughly one billion US dollars for the quarter. However, the company gave up its product. Is the default on Windows Phone devices, the browser Edge. Six years investments to take effect – in October last year, the company announced that Bing finally brought income. And not just any, as amounting to one billion US dollars. And only the malice of fate that the overall influence of Microsoft fell compared to last year by 12%.

The market search engine is so huge, a large part of the revenue Google (for the third quarter of last year amounted to approx. 18 billion .). New initiatives can still count on the rise even as DuckDuckGo – an alternative search engine which recorded a 600% increase in the number of users.

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