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

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)

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Comments (6)
  • tigersam
    , contributor
    Comments (1707) | Send Message
    Apple is making money left and right. But stock is down 10 points.
    12 Feb 2013, 12:11 PM Reply Like
  • MAdeelA
    , contributor
    Comments (62) | Send Message
    This has been the norm after any official/non-official news for the past few months now. Nothing surprising.
    12 Feb 2013, 12:52 PM Reply Like
  • Tvaddic
    , contributor
    Comments (286) | Send Message
    This is fascintating, they 3 biggest companies in the mobile space, Apple, Google and Samsung. All depend on one of the others, Google depends on Apple to be their search partner. Apple depends on parts from Samsung. And Samsung depends on Android, Google's Operating System.
    12 Feb 2013, 02:28 PM Reply Like
  • Money Maverick
    , contributor
    Comments (14) | Send Message
    I project a law-suit in the near-future... can you say "collusion"… even though you know there’s probably no proof or empirical data to support the allegation... you know there's a lawyer gathering data to initiate the All-American process to ensure SUCCESS…i.e., to advantage ones-self at the expense of the efforts of others.... aka, the American way !
    12 Feb 2013, 03:05 PM Reply Like
  • lreynoldswvu
    , contributor
    Comments (4) | Send Message
    Good News fellow shareholders. Tim Cook not scheduled to speak tommorow.
    12 Feb 2013, 04:57 PM Reply Like
  • ljones1951
    , contributor
    Comments (3) | Send Message
    It is a shame that Mr. Cook did not seize the opportunity to shed some light on a lower cost phone, a iWatch, an iTV, or at the very least something a tad more positive regarding dividends and preferred shares. While maintaining a cult image coupled with a surprise factor appears to work for Apple, that nonsense has no merit when responding to questions of returning meaningful shareholder value in terms of stock repurchases, preferred shares and higher dividends in general. Einhorn has the right approach. Time to get off the pot!
    13 Feb 2013, 03:54 AM Reply Like
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