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Apple Demands $9 Billion From Google For Default Search On iOS (neowin.net)
A new report from Goldman Sachs analyst Rod Hall suggests that Apple may be demanding $9 billion from Google to have its search engine as the default in Safari on iOS. This is a steep increase to last year's estimated $3 billion licensing costs and $1 billion licensing costs in 2014. Hall suggests that Apple may even increase the costs to $12 billion in 2019. Neowin reports: It's unclear if Google's supplanting Microsoft as the default search provider for Siri and Spotlight last year is responsible for the purported price hike from Apple, though it may, at least partially, explain the sudden jump. The other explanation could be that previous estimates of the value of the agreement between the two tech giants were undervalued, given that apart from the $1 billion figure from 2014, we don't really have any hard evidence pertaining to the actual sum of these payments. Hall does indicate that "Apple is one of the biggest channels of traffic acquisition for Google' and despite the high cost, it is quite likely that Google will agree to pay the increased sum."
If anyone knows how many mac users there are we could divide it into 9 Billion and see whether the answer seems like a reasonable amount for Google to make from advertising.
Confucius say, "Find worm in apple - bad. Find half a worm - worse."
Gives a new meaning to free and really goes to show that users are the product being sold here. I know thats all obvious but sometimes its helpful to see it. Sort of like being on a Cruise, you know the ocean is big, but you didnt realize it was THAT big or how small you really are
Jacking the price up like that, just because, is taking the p*ss surely.
It's really a balance on whether or not google needs that traffic anymore, or apple wants to make up with the lacklustre services of microsoft search on their flagship products.
One is a search engine that works really well with a decent open phone OS to boot that lets modders do what they want. The other is a bag of shit and repeated
failures and failed product relaunches.
Who do you want to associate with, apple?
Was $1 billion a couple years ago. Could also be that Apple doesn't care switching to Bing. This huge $9b amount is not only to have users go through Google, it's also to prevent the same users from going through Bing.
Slashdot, fix the reply notifications... You won't get away with it...
Was $1 billion a couple years ago. Could also be that Apple doesn't care switching to Bing. This huge $9b amount is not only to have users go through Google, it's also to prevent the same users from going through Bing.
I will cry dry tears over Bing (or any other search engine) gaining market share and Google getting some competition, Google is in urgent need of some serious competition.
btw,
rather than donating your history and ad money to google, why not use duckduckgo.
I switched years ago, and feel dirty when I use google.
duckduckgo context !bangs are very convenient.
!amazon blue shirt
!youtube blue cat
!w linux
or even
!g duckduckgo
A search engine that finds results again. Not just what was not deranked.
Domestic spying is now "Benign Information Gathering"
I will cry dry tears over Bing (or any other search engine) gaining market share and Google getting some competition
This needs to stop. I'm okay with a company setting a default, as long as you can change it, but the default should not be influenced by money when your in a semi monopoly position like that.
Android complicates that, since Google is paying for the development with a condition being their stuff is on there. I'm not sure I'm loving that either, but what is the alternative?
I suspect this is the opening gambit by Apple. The price will be reduced significantly. Google will just have to choose the amount of pain they'll accept. I'm certain that Google knows how much Apple customers are worth to them in term of revenue. They'll accept some portion of this for the rights. Lawyers will argue, engineering teams will provide data and upper management will decide.
Nothing to see here...
Block all Apple devices from Google and Youtube ....
I wrote a small search engine in 1996 - it's still alive, but counts only about 120 visitors a day.
I would have a lot more visitors (and earnings through advertising), if it was the default SE on Android phones.
Thus I also demand 9 billion US$ from Google - where can I collect?
the default should not be influenced by money
uh... so how is the default chosen? Google has better results, sure, but the difference is not consequent enough that Apple cannot make some (good) money out of it.
Slashdot, fix the reply notifications... You won't get away with it...
Sure, Apple crunched their numbers and they know that default search engine is worth more than $9 billion to Google. But if Apple is forced to go to Bing, or worse, implement its own search engine complete with data centers, it will instantly become the laughingstock of the entire internet. After all, crawling back to Microsoft after Bill Gates made Steve Jobs grovel on TV for a $200 million investment. It just doesn't get funnier than that.
If Apple doesn't offer Google by default, it will end up losing way more than $9 billion in sales from customer defections. Go ahead Google, you can easily afford the downside risk. Let Apple learn by doing.
When all you have is a hammer, every problem starts to look like a thumb.
Could also be that Apple doesn't care switching to Bing.
I really really really want Apple to switch to Bing. Sitting back with popcorn, waiting for that one.
When all you have is a hammer, every problem starts to look like a thumb.
So we're saying that Apple the last bastion of advertising free pro privacy is selling out? At least we can assume we'll all be getting a $45 rebate, right? That is $9B divided by 200M phone sales in 2017.
browsers with google as the default search engine on people's computers, maybe google should pay me, too.
with Google your the product.
With apple your the product through Google.
Yup apple cares about security all right; the security of its income.
The title is stated as fact what the summary clearly states is just a guestimate. Amazing how pretty much every thread here so far has missed that and is discussing this like the title is 100% fact.
Waterfox - a Firefox fork with legacy extension support, security updates and better privacy by default.
I used bing on my android phone cos it let me browse the web instead of constantly trying to install apps that probably want to rape the phone.
Likely not news to any Slashdotter, but the rumor I heard when BING came around was BecauseIt'sNotGoogle. Microsoft's ambition was to corral the web through its .net domains and services, but failed. I have always tried to be vigilant about comparing go-fers since '96. Dogpile wasn't as relevant as I had hoped. I was a Google-booster when Yahoo (recall powered by HP?) and Alta-Vista failed to identify paid listings and was impressed by Bing's early image searches, but was still "loyal" to Google and volunteered my time to assist its image search (if anyone remembers that).
;)
And then along came FaceBook in '05, and by '08, I was dismayed to see how many personal photos were behind its walls. I groused about J-Stor before Lessig paid public attention (but was awakened by his first presentations about copyright) and that inherently non-egalitarian and isolationist trend that sent Aaron Schwartz over an edge. The commoditization of the web is truly painful to have lived through, but I'd be a fool to think another outcome is likely. Between then and now, an interim of dead-links (or forward to a hosting company) is a cold, cold feeling, but a tropical zone compared to the efforts to remove a uniform resource locater from users. TRON was supposed to be fiction
Would were! Should is! Could be! And live a hundred times three.
uh... you just open a tab with bing inside...
Slashdot, fix the reply notifications... You won't get away with it...
Thats what is so neat about capitalism and allowing free market competition. Another really great search service can grow.
Not until the PageRank patent expires at the very least. In addition, I've seen a lot of sites whitelist Googlebot in /robots.txt and in Flexible Sampling (inclusion of paywalled sites in Search), and these sites might not be so willing to do the work to extend the whitelist to cover a competitor.
Tech, but bitches.
uh... so how is the default chosen? Google has better results, sure, but the difference is not consequent enough that Apple cannot make some (good) money out of it.
Why do you have to choose a default? Apple already asks setup questions when you first turn on a device. Of course then it would just shift to charging companies to show up in the list of options. You could do a blank box and let the user type in the url but that is hard on the semiliterate users.
Whatever solution, it makes my skin crawls when one monopoly is giving billions of dollars to a different monopoly in order to maintain those monopolies. Anyone who isn't disturbed by this isn't paying attention.
Folks, this is just Late Stage Capitalism greed. I am hoping all this greed will one day just be these guys undoing.
And I'd still switch to DuckDuckGo in a heartbeat.
It seems like Apple has decided that people who use their phones are a product, to be sold to Google, not a customer.
Have you not read the paper? Apple has like a paltry 1% share. They are barely hanging on.
Basically it means that Apple is a big reseller channel for google. It's just like a big supplier negotiating with a big channel like Walmart and Amazon.
Frankly who cares it's purely business.
What happened to you guys?
Makes a big dent in that payment they have to make to Irish tax authorities.
It's not like Yahoo is a candidate... or Bing.
In a world of the blind, the one-eyed man is king--and the two-eyed man is a heretic.
9billion for 2 seconds to change 1 string variable in the source code...... Jesus Christ Apple are you delusional?
And then Google, Yahoo, DuckDuckGo, and every other search engine should charge Apple $9 billion each to be listed in online search results :)
f apple
Google is undervaluing the services they provide. They should think about charging Apple for Maps, Youtube, Docs, Translate, Search... or knock all their users off these services unless they install Google Frameworks on their devices:) Apple is a wall-garden afterall. Let them be a walled-garden, isolated from the rest the world. Provide 3rd-rate solutions to go along with their increasingly brick-like devices.
Their income is commercials, and this cost will be offloaded to advertisers, who will offload the cost to the consumer.