Google will pay Apple $15 billion
Apple has its eco-system of products from phone to browsers hence users rarely need to venture outside the Apple world in search of third-party apps. Nevertheless, there seems to be a monopoly brewing between Apple and the G. According to recent reports, the latter will pay Apple $15 billion in 2021 to be the default Safari search engine.
That’s quite a hefty sum but it will give an edge to him since currently, Apple does not have its search engine.
It’s no secret that Google pays Apple substantial money each year to keep its search engine as the default on iPhone, iPad, and Mac. According to a new projection from Bernstein analysts, Google’s payment to Apple might reach $15 billion in 2021, up from $10 billion in 2020.
Google’s payment to Apple is expected to rise to $15 billion in 2021, and between $18 billion and $20 billion in 2022, according to analysts. The data is based on “disclosures in Apple’s public filings as well as a bottom-up analysis of Google’s traffic acquisition costs payments.”
The big G is most likely “paying to prevent Microsoft from outbidding it.” According to the analysts, there are two major dangers for Google’s payment to Apple: regulatory risk and Google just deciding the agreement isn’t worth it.
Over the years, Apple’s decision to keep Google as the default search engine on the iPhone, iPad, and Mac has been received with increasing criticism. Despite privacy concerns, Apple’s senior director of global privacy Jane Horvath explained why the contract was made in an interview earlier this year: “Right now, the G is the most popular search engine. We do support him but we also have built-in support for DuckDuckGo, and we recently also rolled out support for Ecosia.”
The payment from the big G to Apple makes up a sizable portion of Apple’s crucial Services division. Apple has placed a strong emphasis on Services in recent years to demonstrate to investors that it can generate income and profit in ways other than through hardware sales.
On another note
We noticed an intriguing trend while visiting the Google Playstore recently. SMS Share apps, for example, appear to be gaining in popularity. The COVID-19 epidemic is most likely to blame for the rise in such apps. People have been forced to stay at home due to the outbreak, and as the disease spreads, they are turning to apps for help.
Everyday work has shifted to the virtual sphere, people are looking for more convenient solutions to their difficulties. We’ll have to see if this trend persists or is just a passing craze.