In 2014, the Cupertino-based tech titan received $1 billion from Google as traffic acquisition costs (TAC) to remain the default search engine.
Talking to CNBC, Bernstein analyst A. M. Sacconaghi Jr. said, “Court documents indicate that Google paid Apple $1 billion in 2014, and we estimate that total Google payments to Apple in FY 2017 may approach $3 billion.”
The analyst also pointed out that this potential deal will account for over 5 percent of Apple’s total operating profits for FY 2017.
Google accounts for 95 percent of mobile search traffic in the US.
The analyst also mentioned that while Google might be back out of signing the deal if it’s too confident about being irreplaceable as the default search engine, Apple’s iOS devices account for 50 percent of the Google’s mobile revenue and that might force the search engine giant to reconsider.