Google's Apple business

Its no secret that Google makes a lot of money from Apple (in 2012 Google was making four or five times money from iOS than Android). But how much exactly are we talking about here? Google apparently makes almost 10% of its revenue from Apple, in fact just from iOS according to  UBS (via AppleInsider)! Its just a staggering number that goes to show how dependent Google is on Apple and I am not so sure if the vice versa is so true. 

Agreed that Gmail is one of the best email services out there and Google search has unprecedented popularity on the Internet, but both Apple and its customers seem to care more and more with every passing day about privacy and security of their information. And how much ever Google tries to defend itself, its business model (at least as of today) needs it to look into consumers data (which the consumers want to keep private most of the times). So Google and Apple customers are drifting farther apart in philosophy constantly. It is only a matter of time that something gives way here. One such thing could be the non-renewal of the Google Search in iOS, deal by Apple, that could cost Google a significant amount of revenue (in billions) on a yearly basis. The article notes the possible alternatives as Yahoo, Bing and DuckDuck Go, but will any of them qualify as a worthy replacement to Google to be the default Search on iOS? 

An existing search deal is due to expire this year, and Google investors are reportedly worried that Apple will reject a new one. In a research note to investors obtained by AppleInsider, UBS estimates that Google will generate $7.8 billion in revenue from its iOS deal this year, or about 10 percent of gross revenue... Assuming a 50 percent “switchback” rate, that would roughly halve the impact on gross revenue, and reduce the net revenue hit to 3 percent, in part because Google would no longer be paying Apple a lump sum.
— UBS via AppleInsider