У Apple Inc. there is a less discussed source, which annually brings her multibillion-dollar revenues.
Apple's lucrative partnership with Google
According to Bernstein analyst Tony Sacconaghi Jr., the company plans to pay Apple about $15 billion. It's a payment for that, what Apple, uses Google as the default search engine on iOS.
IN 2020 Year of Google, probably, paid Apple colossal $10 billion for it, analyst said, referring to recent disclosures in Apple's public filings and Bernstein's analysis of Google's traffic acquisition costs (TAC).
Which company wins?
As Sacconaghi noted, TAC payments from Google to Apple grew by 40% year-on-year in the period from 2016 on 2020 year. This is higher, how 18% – Google's overall TAC growth rate.
This trend, probably, Continue, because Google payments to distribution partners, such as Apple, and other partnerships with search engines, grow faster, than payments to network members or websites, analyst said. Besides, Apple's share of mobile web traffic has increased significantly over the past five years.
Apple and Google are giants of the technology sectorApple and Google are giants of the technology sector
Why it matters: Google came under antitrust scanner because of huge annual payments, what he makes Apple. The US Department of Justice may require Apple to terminate its exclusive agreement with Google, thereby giving equal access to other search engines.
Apple is already involved in a lawsuit with Epic Games over app store fees.
With iOS14, Cupertino began showing its own search results and linking directly to a website., when users enter queries from the home screen, the report says.
Today, Apple shares fell by 0,80% to 148,42 dollar, and Google has added 0,52% to $2840,00.
