A new estimate suggests that Google will end up paying in excess of $9 billion to stay the default search tool in Apple's Safari browser this year, and possibly far more in 2019.
The figure could potentially grow to $12 billion next year, according to analyst Rod Hall, cited by Business Insider. In 2017 Google is thought to have paid over $3 billion.
Access to Safari on iPhones and iPads is critical to Google, which generates most of its money from advertising. Safari does support Bing, Yahoo, or DuckDuckGo for search, but most people are likely to stick with the default option as long as it's functional.
For Apple, Google's dependence has been a boon to its services segment. The company has previously told the U.S. Securities and Exchange Commission that licensing fees like Google's are the main driver of the segment's growth, even with the popularity of Apple Music.
Another factor holding Google in place may be the potential backlash from ditching Google. While much of the engine's popularity stems from being a default, alternatives like Microsoft's Bing — used in Siri searches — have been criticized for sub-par results.
33 Comments
I am team #ddg
This is why Google continues to support and improve Android without charging explicit fees but requiring adherence to Play and default app rules. Imagine how much Apple could charge for this positioning if Android did not exist.
Shouldn’t Apple be paying Google for the privilege of having such a premier search engine available to its users? What say you @gatorguy? /s
It baffles the mind how internet advertising can make so much money. I never click on sponsored links. I use ad block on both desktop and phone. Hell, even Google's Chrome blocks ads by default. Nearly everything Google offers is free except a couple devices. I don't get it.