ibusinesslines.com October 16, 2018

Google may pay $9 bn to remain Apple’s default search

01 October 2018, 02:12 | Jodi Jackson

Google Reportedly Paying Apple $9 Billion to Remain Default iOS Search Option

At $12.85 per iPhone, Google’s default search payment is probably a steal

Anyone who'd prefer to not use Google as the default search engine on their iPhone can easily change this.

Google is reportedly paying Apple an incredible $9 billion (about Rs. 65,000 crores) in 2018 to remain the default internet searcher for iPhone's Safari program on iOS, the media detailed. However, in order to keep it that way, Google needs to pay Apple a particular amount every year so that Apple continues using Google as its default search engine platform.

According to the Goldman model, however, Google's fee to remain the default iOS search engine accounts for 24% of the services business, and AppleCare accounts for 17% of the $31.3 billion in services revenue that Apple collected previous year.

Hall went on to say that Google's payment to Apple next year could be as much as $12 billion.

Apple has been touting that services will be a huge area of growth for the company, as sales of its hardware start to peak. Apple Music has seen enduring development since its commencement in 2015.

Safari is the second most popular browser, after Google Chrome. In new research, the firm estimated that about $9 billion of Apple's expected 2018 services segment revenue - about one-quarter of the estimated total - has nearly nothing to do with Apple itself.

Now, if Google is one of the main reasons that Apple's services are growing, then the iPhone maker's status as an annuity business is less than it seems.

And if Goldman's $9 billion figure is close to correct, it also undermines Apple's opposition to digital advertising businesses.

Tim Cook is right that the business models of Google and Facebook allow the companies to enjoy massive financial incentives but reckless when tracking people's lives to provide advertisers accurate but harmful ways to introduce them jobs, services, and products.

Google does not disclose the specific amount of money it pays Apple.

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