Over the years, Google has been paying quite a hefty amount to iPhone creator to remain the default search engine on iOS-powered devices. Though none of the companies are publicly speaking about the payment agreement, analysts have a pretty good idea about the payments.
Rod Hall, a Business Insider analyst told that Google may be paying around $9 billion to Apple this year to keep itself as the default search engine for Apple’s Safari browser. Hall believes that the number will keep growing with time and it can potentially lead to a staggering $12 billion payment for 2019.
Another analyst of Bernstein, Toni Sacconaghi, revealed in 2017 that Google paid $3 billion to Apple for the default search engine face. Despite so many speculations over the years, we only have one confirmed number that came out in 2014 due to court filings. This is when Google paid Apple $1 billion for the preferable search engine spot. Goldman Sachs might be confident with $9 billion and $12 billion figure but it’s hard to believe that the jump will be so high in just four to five years. Apple and Google both have always denied disclosing the actual figures. However, Google never shies from stating how it is paying a pile of money to Apple and other big companies in order to keep their users on-board. Apple never bothers talking about the revenue stream it has from Google.
If Google is the biggest reason for the iPhone creator’s service segment then Apple’s annuity business transformation is just a talk. Apple solely depends on its iPhone sales and it has been like this for years now. Tim Cook, the Apple CEO, is always ready to brag about his smart ways of earning than companies like Facebook Inc and Google, who make their money through digital data traits and projecting ads with that data.
Cook is right at some point that the advertising-dependent business models like Facebook and Google have to go beyond limits and track user behaviors and personal lives to advertise successfully. While these practices have potential threats to user privacy, they also exploit the user trust over services.
Okay, so Apple is not doing anything wrong. Not really, because Apple is cashing in its cheques coming from the profits from user information exploitation done by these advertisement-centric companies. Among the two CEOs, we think Cook should be bold enough to disclose the amount taken by Apple every year from Google. Everyone would like to know whether or not there is a 33% raise kept on Google for being the default search engine on Siri, Safari, and all sorts of iOS web searches.