Google is reportedly paying billions of dollars to Apple to keep its default search engine on iPhones and iPads, according to Bernstein's note to investors on Monday.
The company believes that Google will pay Apple about $ 3 billion this year, an increase of about $ 1 billion from what it paid only three years ago, and that search giant licensing fees form a large part of Apple's business services.
Apple has been promoting its business services as the company's fastest-growing business segment, anticipating that it will soon be among Fortune 500's most important companies.
The court documents show that Google paid Apple $ 1 billion in 2014, and Apple's total search company payments are estimated at $ 3 billion in fiscal year 2017. Google alone accounts for about 5 percent of Apple's total operating profit this year. Accounting for about 25 percent of the company's total operating profit growth in the last two years.
According to Bernstein, it sees the pros and cons of payments, and Google may decide to back down from paying any licensing fees to Apple if it feels confident enough that its search engine is very popular and that Apple has no other choice to make it a default search engine on its smart mobile devices .
Apple devices operating on the iOS operating system contribute about 50 percent of Google's mobile search revenue, which means that the search company may be very scared if it abandons the licensing agreement with Apple, which indicates that this agreement Is a win for both companies.
Apple executives are trying to focus on the company's fees from the software sold on its store or the money it gets through paid subscriptions for services such as Apple's music service, but according to the financial company, license fees paid by Google are actually larger or The second-largest contributor to Apple's service growth.
0 Comments