Google to pay Apple $3 Billion

The final and official iOS 11 is expected to be released in September.				Apple

The analyst firm believes Google's licensing fees for search make up a large part of Apple's services business. Currently, iPhone and iPad users can change the default search engine by clicking on Safari under the Settings option.

Securities firm Bernstein sent a note to clients today, stating that Google will end up paying approximately $3 billion to Apple this year to remain the default search engine on the Apple iPhone and Apple iPad.

The last known stat of the Google and Apple deal comes from legal proceedings in 2014. According to Apple, if its service business was considered a separate company, it would qualify for the Fortune 500.

Amid Merger Efforts In AIADMK, A Twist From Sidelined Dinakaran
Palaniswami recently announced that TTV Dhinakaran's appointment as the party's deputy general secretary was invalid. He also said the party has to get back the two leaves symbol and fight the Lok Sabha polls in 2019.

IBD'S TAKE: Google stock is up only 15% in 2015 after weakening this month and is nowhere near a technical buy point of 1,008.71 while another FANG stock, Amazon.com, remains on the IBD Leaderboard along with Alibaba Group Holdings, Arista Networks and Netflix. "Court documents indicate that Google paid Apple $1B in 2014", analyst A.M. Sacconaghi Jr. wrote in a memo to investors acquired by CNBC, "and we estimate that total Google payments to Apple in FY 17 may approach $3B". Additionally, the payment is described as "nearly all profit for Apple", with Google possibly accounting for 5% of Apple's total operating profit this year. Provided that estimate is somewhat accurate, Google may be directly responsible for a quarter of Apple's recent operating profit growth and five percentage points of its total operating profit in 2017.

"Given the size and favorable demographics of its installed base, one would think that Apple could have opportunities to generate licensing revenues from other advertising or commerce intensive apps, particularly if Apple offered to make them default applications within iOS", added Sacconaghi.

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