The fact that Google pays Apple to be the default search engine on the iPhone, iPad, and Mac has long been known, and technology behemoth pays a lot for this “patent”. According to a new Bernstein analysis, the cost will rise by $ 5 billion this year. It is predicted that Google will pay Apple $ 10 billion in 2020 to maintain its search engine as default, and the cost will rise to $ 15 billion in 2021. Ped30 discovered this information in an investor letter. According to the paper, high interest rates will rise even further in 2022, hitting $ 18 to $ 20 billion. This data is derived from
“We have noted in previous research that Google may be paying to ensure that Microsoft does not oppose it.” – Analyst Toni Sacconaghi According to analyst Bernstein Toni Sacconaghi, Google is pouring billions of dollars into Apple to make sure Microsoft does not pass it by. If so, this might make the native Microsoft Bing iPhone search engine. Google Search can become the default search engine of a single mobile device – Google to pay Apple $ 15 billion to find the default search engine of the iPhone. Google Search can become the default search engine of a single mobile device
Apple is trying to increase its revenue from Services, which also accounts for Google. According to 9to5Mac, the Cupertino company wants to reassure its investors that it can profit not only through the sale of equipment. Sacconaghi said there are two risks to the increase in price. The first is process risk, which means Google may lose its license to operate. Even so, he said, it is possible that this is too late. The second and most likely risk is Google choosing not to pay a higher price anymore. This could mean that Google is also negotiating a deal with Apple in order to pay less, or refuse to pay in total. If so, Apple will have a hard choice to make. Do you go with Microsoft at risk of losing market share, because most people would not like this decision, or did you offer a lower rate to Google, thus making your services revenue higher? This is a choice that a company may have to make soon.