Google search deal netting Apple over $100 million yearly?
updated 05:05 pm EST, Thu February 11, 2010
No reason for Apple search tech, says source
Apple is being paid over $100 million per year in its search deal with Google, a source tells Silicon Alley Insider. A lesser-known fact of the companies' partnership is that Google shares a small amount of its search revenue with Apple as a result of being the default search engine on the iPhone. A $100 million sum is said to be relatively trivial for Apple, but enough that the company has no reason to invest in a search engine of its own.
The rumor of an Apple search engine "isn't credible," the source suggests, because it would take a tremendous amount of money and effort to create a competitive search engine worth more than the Google payout. Apple could simply negotiate with companies like Microsoft if it wants a different arrangement. This may be a strong possibility, as the source claims that the Apple-Google relationship has been deteriorating for sometime.
The person mentions for instance that when the original iPhone was in development, the first Google Maps deal was completed in two weeks. When it came time to expand on the deal for the GPS-equipped iPhone 3G, it allegedly took six months "full of acrimony" to work matters out. Google is said to have wanted access to data from maps that Apple was not willing to give. The companies are now competing in terms of browsers, advertising and phone and desktop operating systems.
Fresh-Faced Recruit
Joined: Aug 2001
Rubbish
Apple has already demonstrated that it can compete with companies it also works with (Microsoft, anybody?), so the mere fact that they compete in some areas does not mean they now hate each other.
Steve may not appreciate the Android Team very much, that is pretty clear, but the whole company? Bollocks.