Samsung could hit a $3.5 billion license fee from Google this year

Aug 17, 2017

Samsung may be the number one smartphone company in the world in terms of market shares but that is just one of the tech giant's multiple sources of revenue. The Korean company has reportedly renewed its license payment contract with Google for the use of Google's search bar as the default search engine on its smartphones.

The Korean Herald quotes local newspaper, JoongAng Ilbo, as revealing that the tech giant could rake in up to US $3.5 billion in license fee from Google this year. The amount is an estimate which is based on fellow rival tech company- Apple's licensing revenue also from Google. Apple is expectedly going to earn up to US $3 billion from Google this year for the use of the Silicon Valley company's Web browser on its iPhones and iPad, according to a disclosure earlier this week by Toni Sacconaghi, an analyst at Bernstein Researcher. This figure is three time what Google reportedly paid Apple in 2014 which was estimated to be $1 billion in a court filing by Oracle back then. The South Korean tabloid also reports that Samsung has also seen its licensing revenue increase in recent years along with its strong smartphone sales.

Samsung remains the No.1 Android vendor worldwide and with an increase in its phone shipments so far this year, the estimate of US$3.5 billion looks possible. Google search bar is a regular feature on the home screen of millions of Samsung smartphones worldwide including the latest Galaxy S8 and S8 Plus flagship models.

Google makes money from the ads that are displayed when users search via its app and online so, being present on Samsung's handsets as a default search engine may be proving paramount for Google's ad revenues, hence the hefty estimate of up to $3.5 billion licensing fees it may be doling out to Sammy this year.

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