Monday , June 21 2021

Google paid Apple nearly $ 10 billion to continue as a default search engine

Apple's revenue for services grew significantly last year and is expected to continue to do so in 2019. However, according to Goldman Sachs latest estimates, the huge fifth of the money generated by the business in 2018 came directly from Google.

This is a figure somewhere between 9 and 10 billion dollars and is directly related to the search efforts of the internet giant. At present, Apple is one of the largest channels for acquiring traffic to Google – it accounts for nearly half of all mobile earnings – and to keep these figures, Apple pays Apple a significant amount each year.

This payment ensures that Google will continue to work as a default search provider for iOS devices rather than a competitive search engine. The downside of the deal is that Apple can continue to raise prices each year, and if Google ever refuses to pay the amount, Cupertino firm can simply turn to a rival like Microsoft and make Bing the default search engine.

For Apple, these agreements are considered to be virtually net profits, and once the company's consumer base continues to grow, the iPhone giant may continue to increase its prices each year, thus making dramatic use of its business services.

Source link