Google (GOOG) paid Apple (AAPL) $701M in traffic acquisition costs last year in exchange for...

|By:, SA News Editor

Google (GOOG) paid Apple (AAPL) $701M in traffic acquisition costs last year in exchange for being the default search engine on iOS, estimates Morgan Stanley's Scott Devitt. He sees that figure rising to $877M this year and $1.1B in 2014. With Microsoft (MSFT) reportedly raising its offer for making Bing the default iOS engine, Devitt believes Google is now providing Apple with a 75% revenue cut. Those numbers drive home Android's importance to Google's future. (previous)