Google has to pay Apple $12bn to remain Safari’s default search engine but the actual figure can be bigger. Google.com is topmost searching in the world as well as the chrome. Chrome dominates the browser industry with 59.7 percent where Safari comes second with 14.5 percent. In the U.S. alone, Chrome delivers 49 percent of the internet traffic where Safari 31 percent.
To remain in the top, Google also has to target Apple users. As Apple does not have any search engine yet, this will a win-win business contract for both of them. In a report from Fortune.com, Google is stated to be paying Apple $9 billion this year. And the amount will continue to grow to remain default search engine on iOS . Analysts are forecasting that the payment could lead to $12 billion in 2019. Last year, they reported that Google paid Apple $3 billion for the same purpose.
Comparatively, Apple’s hardware division adding huge profit margins. Now, they exploring all other opportunities to add more revenue. Dealing with Google.com has become a profitable sector for software departments. Apple enjoys the high profit from the digital advertising without taking any responsibilities.
Google has to pay Apple $12bn to Remain Safari’s Default Search Engine.
On the other hand, Apple is one of the biggest channels of traffic acquisition for Google. Being default search engine on two of the biggest web browsers, Google will earn significant revenue from the advertising clicks. The amount that Google pays to Apple is a part of the overall earning through advertising alone. Google continues to produce a high profit from its search engine business. So the $12 billion is just nothing for this search engine giant.
According to Goldman Sachs, Google will pay Apple $12 billion in 2019 to remain as Safari’s default search engine. The Goldman Sachs report finds the payments to be a fraction of the money it ends up making.
Bernstein analyst Toni Sacconaghi additionally revealed in 2017 that Google previously paid Apple an estimated $3 billion. The agreement amount is available from 2014 and it was $1 billion for its search engine spot. This may not the actual payment amount, this is just court filing amount t show, according to Fortune.com. Considering $9 and $12 billion are a big investment in four and five years, respectively. Google and Apple won’t actually disclose the figure, it’s unclear how accurate the Goldman Sachs estimate really is.