Apple's Deal With Google for iPhone Search Pegged at Over $100 Million Per Year

Silicon Alley Insider reports on information from a source claiming that rumors of Apple looking to develop its own search engine are untrue and that Apple's current deal with Google to provide default search functionality for the iPhone is currently worth over $100 million per year to Apple in revenue sharing.

Our source tells us "there's too many options" for search on the market, so there's no reason for Apple to build its own search engine.

Another reason Apple might not want to build its own search engine: It's getting over $100 million a year from Google in its revenue share deal, according to our source.

For Apple, that's not a lot of money. But, it's enough that it doesn't make sense for Apple to put considerable resources towards building its own Internet search engine. And, if Apple wanted more money or options, there's Microsoft -- with Bing and a big checkbook.

A report from BusinessWeek last month had in fact claimed that Apple and Microsoft have been in talks to make Bing the default search provider for the iPhone as the relationship between Google and Apple has reportedly soured as competition between the two companies has become increasingly intense.

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