Google to pay $9 billion to Apple in 2018, but why?

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

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

It not only serves in Android smartphones but even the iOS devices execute all the search-related duties through the most adapted search engine.

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 a year ago.

Wall Street analysts have been very pleased with the growth of Apple's services revenue, which was reported to be $9.55 billion in Q3, up 31 percent since past year.

Google Chrome is the most popular browser on the planet, so there's no question that it has Google Search set by default.

It's unclear if Google's supplanting Microsoft as the default search provider for Siri and Spotlight a year ago is responsible for the purported price hike from Apple, though it may, at least partially, explain the sudden jump.

Apple doesn't have its own web search solution, which is why it has to rely on Google or Microsoft Bing. For Google, the iPhone is a major source of traffic to its search engine, and every one of those searches is an opportunity to show ads and collect targeting data. Hall also echoes those earlier reports, saying "Apple is one of the biggest channels of traffic acquisition for Google", so it sounds like Google will continue to pay what it needs to in an effort to make sure nothing changes in that regard".

Goldman Sachs analyst Rod Hall suggests the company may be looking to ask Google for a whopping $9 billion dollars in order to renew its deal for this year, a sum that he suggests may increase to $12 billion in 2019. While the free iCloud stockpiling level still stays at only 5GB, more clients are presently eager to pay the month to month charge to gain admittance to more stockpiling.

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

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