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Bernstein says Google could pay Apple $3B to remain iPhone search engine

Published 08/14/2017, 10:11 AM
© Reuters.  Bernstein says Google could pay Apple $3B to remain iPhone search engine
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  • Bernstein says Google (GOOG, GOOGL) will pay Apple (NASDAQ:AAPL) $3B this year to remain the default search engine on iPhones and iPads, per CNBC.
  • Google paid Apple $1B in 2014.
  • The Google licensing payments are mostly profit for Apple and Bernstein estimates the payments could account for up to 5% of Apple’s operating profits in 2017.
  • Bernstein analyst A.M. Sacconaghi Jr. says Apple’s products account for about half of Google’s mobile search revenues but that Google could still walk away from the payments at some point. Google wouldn’t walk unless sure that Apple would continue to include its search engine based purely on customer demand.
  • Apple shares are up 1.19%. Alphabet Class A shares are up 0.87%.
  • Now read: Apple iPhone 8 A Game Changer For Shareholders


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