Google may have given Apple $ 3 billion to continue to be the iPhone’s search engine.
Apple does not give clear information about the full amount. However, Google is known to spend a considerable amount of money on its iPhone and iPad devices in order to continue to function as the default search engine. According to a prediction made by Bernstein’s analyst Toni Sacconaghi, one of the most respected companies in asset management, Google may have paid Apple at least $ 3 billion. Google may given Apple 3 billion dollars iPhone’s search engine.
Based on this estimate, Google is alone in meeting the 5% of Apple’s total business profit and 25% of the total business growth.
Only solid evidence court records
The most robust data known at the moment is Google giving Apple $ 1 billion in 2014. In this $ 1 billion court proceedings, the agreement between Google and Apple is a percentage of the money that Google earns over iPhone and iPad users paid to Apple. It is unclear to what extent the bet is here, but Bernstein’s media reports are 34% of the agreed price.
Apple has been trying to attract investors’ attention to Services products lately. Services is a part of Apple’s 13% of this year’s total earnings. Apple executives prefer to focus on how much revenue they earn from Apple software sold through the App Store or how much revenue they earn from Apple Music memberships when they talk about Services.
However, Bernstein comes from licensing when Apple reviews its files in detail, which is what Google pays to Apple, making it the largest or second largest contributor to Services’ growth.
Apple will continue to generate revenue for longer than Google
Bernstein says that almost all of the amount Google will pay to Apple will be profitable. This is of course a very good deal for Apple as well as a strong reminder of the importance of the iPhone ecosystem once again.
And if Google does not find a way to change the terms, Apple seems to be getting increasingly expensive payments every year.
Bernstein also suggested that Apple could sell app placements on iPhone as a way to double Apple’s license revenues. “… especially if Apple loads these apps by default in iOS – consider using Uber (instead of Lyft), Amazon (instead of Jet), Facebook (instead of Snapchat / Twitter), Google Maps (instead of Mapquest), WeChat (instead of Line), or Netflix Hulu instead) “Sacconaghi stated.