You will not believe much in Google Pay Apple to Be a Search Engine on your iPhone

While Apple services now account for a large share of the company’s quarterly revenue, second only to iPhone sales, it may come as a surprise to learn that most of these revenues come from one of Apple’s main competitors. Surprisingly, Google is Apple’s largest single customer, paying billions of dollars a year for the benefit of being a default search engine on the iPhone and iPad, and new analyst reports suggest rental prices for something special digital assets can be accessed. $ 15 billion in 2021.

After all, a billion iPhones and iPads are in use, and most users don’t put much thought into the search engine they use when they just open Safari and type something in, so it’s very easy to see how it is. default search engine is easily worth billions of dollars for a company whose entire business is based on the type of data that comes from search queries. Recent statistics suggest that Google currently handles 60,000 search queries per second, or more than 5 billion queries per day. That is a lot of data, and it is safe to say that most of it comes to Google by default.

So, needless to say, this is also a beautiful competitive landscape. Google may be the biggest search engine in the city, but it is far from the only one – you have to compete with other juggernauts like Microsoft who will of course want to have a foothold in the competition by being front and center on the billions of Apple. devices. In an investor note shared by Ped30, it looks like fears of competition will force Google to pick up, giving Apple nearly $ 15 billion this year to ensure it stays on top.

According to Bernstein analyst Toni Sacconaghi, Google’s estimated payments to Apple last year amounted to $ 10 billion – higher than the $ 8 billion originally intended, but in the middle of a pile of analysts. This update is based on the discrepancies in Apple’s public SEC launches and “Google’s TAC downward analysis (purchase prices).” Sacconaghi added that these numbers could be as high as $ 20 billion by 2022, and while acknowledging the possibility of regulatory antitrust concerns that could declare a search agreement between Apple and Google to be illegal, he suggested that “it is possible years ago. ”

According to Sacconaghi, if Google does, in fact, pay the projected $ 15 for this fiscal year, that would work for 9% of Apple’s big profits. This means that almost 1 / 10th of Apple games are coming to terms with one of its biggest technology rivals. To be fair, however, these types of trades cut both ways. As we saw a few weeks ago, Apple is also paying Google around $ 300 million a year to rent space for iCloud data on its servers. However, $ 300 million is a fraction of $ 15 billion.

The size of the Google search business puts Apple Services revenue into a very different light to what most people know. When most users think of Apple Services, they are thinking of user-facing services like Apple Music, Apple TV +, Apple Arcade, Apple Fitness +, and so on. However, these external services accounted for a fraction of the $ 17.5 billion that Apple posted in Services revenue in the last quarter.

Apple Arcade: Apple hasn’t said much about how many subscribers it has for its gaming subscription service, and by itself Apple Arcade likely contributed significantly to Apple’s bottom line. Apple + Accounts: By all accounts, we think revenue from Apple subscription account service is more than a round error on Apple revenue details. It has had a very difficult time getting close, and it may even have more than two million subscribers.

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