Apple, which has the second-largest market share in the smartphone market, not only has a lot of say in setting standards, but it turns out that when it comes to choosing which third-party services are the default service for Apple devices, it also has some very profitable “The way of trading.”
Goldman Sachs analyst Rod Hall predicts that if Google wants to become the default search engine for Safari this year, it will need to pay Apple $9 billion. Next year, prices could rise to $12 billion. In 2017, Google spent only $3 billion.
From 2014 ‘s US $1 billion to $ 3 billion last year, Apple has for years been asking Google to pay more and more of the cost, because it has the right to its search engine as Safari browser’s default search engine. However, a new report shows that Apple may increase its cost by a factor of three.
For Google, it’s important to be the default search engine for iPhones and iPads, after all, Google’s revenue comes from ads for search results. In addition to Google, Safari also supports Bing, Yahoo, or DuckDuckGo as search engines, but the average user will not change into the settings. Hall also said that “Apple is one of the biggest channels of traffic acquisition for Google’ and despite the high cost, it is quite likely that Google will agree to pay the increased sum,” and despite the high price, Google is expected to decide to pay an increased fee.
For Apple, Google has also become the most significant contributor to the company’s service business revenue growth. The money that Google pays is unique in that it is a pure profit, and there is almost no cost to Apple. According to Apple’s third-quarter earnings report, service revenue has become Apple’s second pillar, with service revenues reaching $9.5 billion, an increase of 31%.