Google pays $3 billion to be the default in Apple’s devices

In the silicon valley, No voice above the voice of battle

This was Google’s logo since 2014 when it began a series of cash flows to Apple’s bank accounts for one purpose: to make their Google browser a default browser on Apple’s iOS devices such as iPad, iPhone, and others.

The technical middle shook when the research and brokerage firm Brenstein gave a paper saying that Google was about to pay $ 3 billion to Apple to keep its fortune as the default browser for Apple’s hardware.

According to the memo, the company had previously made the move in 2014 but by $ 1 billion for Apple.

Court documents indicate that Google paid Apple $1B in 2014, and we estimate that total Google payments to Apple in FY 17 may approach $3B,” CNBC quoted analyst A.M. Sacconaghi Jr. as saying.

These projections were based on three main items:

• Market research says Google’s profits have doubled from $ 16 billion to $ 50 billion between 2014 and 2017, almost three times as much. Similarly, payments to Apple will be $ 3 billion instead of $ 1 billion as previously.
• The second point is that in the last two quarters, Apple’s services revenue has doubled by $ 2.4 billion as the App Store tops the list of services the company is gets its revenue.
• Thirdly, Google’s allocation of costs for any amount paid to OEMs was 2.2 times higher than in 2014.

Based on these three points, the company is expected to pay $ 3 billion to Apple to become the default search engine on Apple devices.

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This news received mixed reactions from those who commented that it’s not worthy the fact that Google was the first name to be automatically written when buying a new phone, but some objected to this because of the following image showing that search engines have more control in places Such as East Asia and Northern Europe, Google should keep its fortune.

Apple has 50 percent of Google’s earnings from phone searches. According to Sacconaghi, it would be in Google’s best interests to leave Apple without a step to lose the smartphone market, but he said Google might back down on the deal. A case that it deemed to be sufficient to market or have actual power, and that Apple would not add another default search engine.

This is the usual war among Silicon Valley companies, each trying to be the first in which he competes. Let’s wait for what days will tell us. Will Google pay this amount, or pay less or more, or will them back down entirely?

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