Google, in 2018 almost 10 billion dollars to Apple to stay on Safari by default
According to some market, estimates Google would have paid Apple an almost $10 billion donation to remain the default search engine on Safari.
How much can a privileged place cost on a browser like Safari? According to some estimates, the bill could be decidedly salty, equivalent to $9.5 billion a year if Google is to pay and to receive is Apple. This is the figure reported by CNBC and derived from the analysts of Goldman Sachs with which Google has managed to keep its search engine as default on Safari. And it is a huge figure, even if we consider the size of the companies involved.
Making a quick calculation can be learned, that $9.5 billion is equivalent to 20% of Apple’s turnover for the entire service division: under this hat the Cupertino multinational indicates all the revenue derived from different properties, such as Apple Music, iTunes, App Store, and paid services in general, but without revealing how much each of them affects within the division’s total revenue.
In addition, according to the same analysts, Google payments and sales on the App Store have achieved, together, about 51% of the turnover of the services division in 2018, and about 70% of the gross profit.
It seems that the incidence of Google within the service department of Apple is set to fall, and if you want to maintain a satisfactory growth rate, Tim Cook and colleagues have to invent something hot in that department. And something, perhaps, is really boiling in the pot.
Apple could soon launch a bundle of services consisting of Apple Music, Apple News (paid) and a television streaming service, which could increase the growth of the department’s annual turnover.
The complete package should already be available in the first half of the year (probably only in the English-speaking countries), and the formalization should arrive at the end of March, or at the latest in April. However, some things have to be completed before the launch.
According to some rumors, Apple would be asking for 50% of the turnover for the subscription to news services, a commission too high even for its fees, all seasoned by a certain reticence in releasing data to partners registered users and their credit cards. It is still necessary for Apple to shift its center of gravity to the services branch, just as hardware sales begin to decline.
The smartphone industry is down, and Apple still depends on too much accentuated by the sales of the iPhone. In the quarter of the end of 2018, the division’s turnover fell by 15%, and the growth rate should not increase before the new models (which will arrive in the fall). The services will be crucial for Apple’s growth, and to date it seems the only way for the giant to return to a market valuation of over one trillion dollars.
