(NASDAQ: AAPL) has a small questionable revenue stream that brings in multi-billion dollars per year. Apple’s Profitable Google Partnership: According to Bernstein analyst Toni Sacconaghi, Jr., Alphabet Inc. (NASDAQ: GOOGL) (NASDAQ: GOOG) is on track to pay Apple approximately $ 15 billion. This fee is for Apple’s use of Google as the default search engine on iOS. According to the analyst, Google is estimated to have paid Apple $ 10 billion for the same in 2020, using recent disclosures in Apple’s public filings and Bernstein’s bottom-up analysis of payments on acquisition costs. Google traffic.

Why Regulatory Risk Is A Silver Lining For Apple And Google Why It Matters: Google is under antitrust scanner because of the heavy annual payments it makes to Apple. The U.S. Department of Justice may ask Apple to terminate its exclusive agreement with Google, thereby providing equal access to other search engines. Apple has already been involved in a legal battle with Epic Games over its App store fees.

Google’s TAC payments to Apple grew at a cumulative annual growth rate of 40% between 2016 and 2020, Sacconaghi said. This is higher than Google’s 18% overall TAC growth rate. This trend is likely to continue, as Google’s payments to distribution partners like Apple and other search engine partnerships are growing faster than its network members or websites, the analyst. In addition, Apple’s share of mobile web traffic has increased significantly over the past five years.

In the meantime, Apple has begun testing an in-house search technology, the FT reported last year. In iOS14, Cupertino began showing its own search results and linking directly to the website when users typed queries from its home screen, the report added. In premarket trading on Wednesday, Apple shares rose 0.25% to $ 149.99 and Google added 0.24% to $ 2,832.00.

News Summary:

• Apple pays Google a ‘huge amount’ to become the default search engine on iOS
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