Google paid Apple $1 billion in 2014 to keep
its search bar on the iPhone, Bloomberg
reported, citing a transcript of court
proceedings related to a copyright lawsuit filed
by Oracle Corp against the search giant.
Google, a unit of Alphabet Inc, gives Apple a
percentage of the revenue it generates through
the iPhone but details of the arrangement have
never been made public.
Bloomberg, citing a transcript of the Oracle-
Google pretrial last week, reported on
Thursday that a Google witness had revealed
that the revenue share was 34 percent at one
point.
However, it was not clear whether that
percentage represented the amount kept by
Google or paid to Apple, the report said.
The court transcript that was the source of the
Bloomberg report is no longer available online.
Google said in a court filing on Wednesday that
the Android disclosures should not have been
made public, and asked the court to place
them under seal.
In its lawsuit, Oracle is accusing Google of
using its Java software without paying for it to
develop Android.
The Android mobile operating system began
with the release of the Android alpha in
November 2007. The first commercial version,
Android 1.0, was released in September 2008.
An Oracle lawyer had told a court hearing that
Android had generated revenue of about $31
billion and profit of $22 billion since its
release.
“Assuming Android has only generated material
revenue since 2010, then these figures would
constitute about 10 percent of Google’s
revenue and 15 percent of its gross profit
since that time,” Atlantic Equities analyst James
Cordwell told Reuters.
“This makes sense given mobile is probably
about 40 percent of Google’s revenue today,
having ramped up from close to zero over the
last 5-6 years, with this split between iOS and
Android,” Cordwell added.
Google, which morphed into Alphabet in
August as part of a restructuring, does not
break out revenue from its mobile business, a
number investors have long coveted.
Under the Alphabet structure, search,
advertising, maps, YouTube and Android are
part of Google, while the company’s secretive
research arm, Google X and driverless car
project come under Alphabet.
The company will report quarterly results
under the new structure for the first time on
Febuary 1.
Google and Apple did not respond to requests
for comment on Friday.
Source: http://indianexpress.com/article/technology/tech-news-technology/google-paid-apple-1-billion-in-2014-to-keep-search-bar-on-iphone/
its search bar on the iPhone, Bloomberg
reported, citing a transcript of court
proceedings related to a copyright lawsuit filed
by Oracle Corp against the search giant.
Google, a unit of Alphabet Inc, gives Apple a
percentage of the revenue it generates through
the iPhone but details of the arrangement have
never been made public.
Bloomberg, citing a transcript of the Oracle-
Google pretrial last week, reported on
Thursday that a Google witness had revealed
that the revenue share was 34 percent at one
point.
However, it was not clear whether that
percentage represented the amount kept by
Google or paid to Apple, the report said.
The court transcript that was the source of the
Bloomberg report is no longer available online.
Google said in a court filing on Wednesday that
the Android disclosures should not have been
made public, and asked the court to place
them under seal.
In its lawsuit, Oracle is accusing Google of
using its Java software without paying for it to
develop Android.
The Android mobile operating system began
with the release of the Android alpha in
November 2007. The first commercial version,
Android 1.0, was released in September 2008.
An Oracle lawyer had told a court hearing that
Android had generated revenue of about $31
billion and profit of $22 billion since its
release.
“Assuming Android has only generated material
revenue since 2010, then these figures would
constitute about 10 percent of Google’s
revenue and 15 percent of its gross profit
since that time,” Atlantic Equities analyst James
Cordwell told Reuters.
“This makes sense given mobile is probably
about 40 percent of Google’s revenue today,
having ramped up from close to zero over the
last 5-6 years, with this split between iOS and
Android,” Cordwell added.
Google, which morphed into Alphabet in
August as part of a restructuring, does not
break out revenue from its mobile business, a
number investors have long coveted.
Under the Alphabet structure, search,
advertising, maps, YouTube and Android are
part of Google, while the company’s secretive
research arm, Google X and driverless car
project come under Alphabet.
The company will report quarterly results
under the new structure for the first time on
Febuary 1.
Google and Apple did not respond to requests
for comment on Friday.
Source: http://indianexpress.com/article/technology/tech-news-technology/google-paid-apple-1-billion-in-2014-to-keep-search-bar-on-iphone/
