Google Continues To Pay Apple Billions To Remain Safari’s Default Search Engine

Whenever you search for things using Apple's Safari browser, past default it uses Google. Is this because Google is the best search engine out there? Possibly, but it is too because Google pays Apple billions a yr to remain Safari's default search engine, and it looks like that relationship is non simply continuing, but the price is increasing as well.

According to a report from Ped30, they take gotten their hands on an investor'south note from Bernstein'southward analysts where they are challenge that Google is now paying Apple as much as $15 billion in 2021 to remain Safari's default search. This is higher than what Google had paid Apple in 2020 at $x billion, and it seems that this figure is only expected to grow.

According to the analysts, "We now estimate that Google's payments to AAPL to be the default search engine on iOS were ~$10B in FY 20, higher than our prior published model estimate of $8B. Contempo disclosures in Apple tree's public filings as well as a bottom-upwardly assay of Google's TAC (traffic acquisition costs) payments each point united states to this figure…Nosotros now forecast that Google'due south payments to Apple might exist nearly $15B in FY 21, contribute an astonishing ~850 bps to Services growth YoY, and amount to ~9% of visitor gross profits."

They go along to gauge that this effigy will spring to $18-$20 billion in 2022, and the reason behind the increment in payments is because Google wants to ensure that Microsoft (and other competitors) don't outbid them. All the same, the analysts besides believe that at some point, it will go as well much for Google and they might have to revisit their strategy.

Filed in . Read more than about Google and Safari. Source: ped30

Source: https://www.ubergizmo.com/2021/08/google-pay-apple-15-billion-safari-search/

Posted by: evansdifewore.blogspot.com

Share this post