Apple is getting ~$1 billion per year from Google to make Google the search default on iOS devices, according to a Morgan Stanley report.
Analyst Scott Devitt at Morgan Stanley put Google on his "best ideas" list for investments on Friday, in a report titled, "The Next Google Is Google."
The gist of his bullishness: he believes Google’s search business has room for revenue growth and YouTube has an opportunity to generate billions in more sales.
As a part of his look at Google, he dug into the mobile business. He has an estimate of how much Google pays Apple for the right to be the default search engine on iOS devices like the iPhone, iPad, and iPod Touch.
In the past, some analysts have estimated that Apple has a revenue sharing deal with Google on iOS search. So that for every one dollar of search advertising collected on an iOS gadget, Apple gets 75 cents.