Google to pay Apple $3 billion to remain on iPhone

San Francisco: Google will pay Apple nearly $3 billion this year to remain as the default search engine on iOS devices, US-based research and brokerage firm Bernstein has said.

According to a note to investors on Monday, Google has increased the amount this year -- from $1 billion three years ago to $3 billion this year -- and Google`s licensing fees make up a large bulk of Apple`s services business.

"Court documents indicate that Google paid Apple $1B in 2014, and we estimate that total Google payments to Apple in FY 17 may approach $3B," CNBC quoted analyst A.M. Sacconaghi Jr. as saying.

"Given that Google payments are nearly all profit for Apple, Google alone may account for five per cent of Apple`s total operating profits this year, and may account for 25 per cent of total company OP growth over the last two years," he added.

Apple`s iOS devices contribute about 50 per cent to Google`s mobile search revenue, Sacconaghi noted.