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Google Pays Apple $3 Billion Per Year To Remain On the iPhone, Analyst Says (cnbc.com)
In a note to investors on Monday, Bernstein analyst A.M. Sacconaghi Jr. said Google is paying Apple billions of dollars per year to remain the default search engine on iPhones and iPads. "The firm believes that Google will pay Apple about $3 billion this year, up from $1 billion just three years ago, and that Google's licensing fees make up a large bulk of Apple's services business," reports CNBC. From the report: "Court documents indicate that Google paid Apple $1 billion in 2014, and we estimate that total Google payments to Apple in FY 17 may approach $3 billion," Bernstein analyst A.M. Sacconaghi Jr. said. "Given that Google payments are nearly all profit for Apple, Google alone may account for 5% of Apple's total operating profits this year, and may account for 25% of total company OP growth over the last two years."
lumpy semen stay away
I presume G has done the ROI calculation of gaining iDevice search ad revenue, and it is estimated to have increased by more than that $3B, but I really think G would be better off letting Apple default to using Bing for a year. The Android eco-system (and the Pixel group) will love the increased customers.
The downside is that capitalism in this case serves the highest bidder for the product, and the product is not the search engine--it is your eyeballs. As a result your phone becomes optimized for its ability to sell you things, so long as it maintains an adequate level of utility. This also hurts people who are less good than you at filtering and recognizing and discounting advertisements.
just suck on my DAMN balls and enjoy the glorious protein
Apple can't make their own search engine for the same amount?
I mean you can hire the top 500 experts on the technology to make a search engine and pay them $4 million a year and still have $1 billion left over for the required data center and computing power. If you can't have a decent Google competitor within 3 years then you suck.
Or we will switch our users to Apple Maps. And you will never see any of us again.
Have gnu, will travel.
Look, let's be honest here. If Yahoo or Bing were the default search engine on the iPhone, everyone would have already switched to Android by now.
If google wasn't the default, what search engine would iOS users actually use? My guess would be google. What other option is there? Bing? Yahoo? This sounds like a waste of 3 billion for Google.
Google knows it will more than make up the $3 Billion from Apple users so it is willing to spend that money.
It has been shown time and time again that Apple users are more willing to buy stuff, therefore the ads to Apple users are worth more to Google and the people who place the adverts.
"Bernstein analyst A.M. Sacconaghi Jr....Bernstein has an outperform rating on Apple with a price target of $175."
I'm not convinced, there's no reason for the fee to triple. It sounds like Apple ARE shopping around, and trying to convince MS to pay more than $3 Billion for the search rights, and this is part of that marketing. Or perhaps it's just Bernstein trying to hype up the stock.
Either way, he would have no special knowledge of the contract and his claim of tripling while Apple's market share is falling sounds false.
replace with duckduckgo
Do you even know if you're dis/agreeing with The Point?
You're joking right?
If any company deserves to be broken up, it's Microsoft.
Apple is larger than Microsoft, so why not break up Apple first, and see how it goes?
just suck on my DAMN balls and enjoy the glorious protein
If your balls were full of protein, your fag lover would be the Hulk
For all we know, Google may be making more via Apple products than Android.
I am pretty sure they aren't blowing $3 billion a year on Android. At least I hope not .. it's certainly not showing.
Larger by profits but still a small player when talking about marketshare, so they're nowhere near a monopoly which AFAIK is the only thing that can be used by law to split up a company.
#DeleteFacebook
Nice to get an inside look at how the invisible hand helps the market decide.
Sheesh, evil *and* a jerk. -- Jade
Apple is larger than Microsoft, so why not break up Apple first, and see how it goes?
Bigness is not a problem in itself. Only abuse of monopoly power. Apple is nowhere close to a monopoly in any market.
My wife is on the iphone all year long too, and she doesn't get paid a cent :(
Slashdot: providing anti-social weirdos a soapbox, since 1997.
So how much does Google pay Microsoft to be allowed to be the dominant search engine on Windows?
$0.00
Interesting that Apple can, in practice, decide which engine its users' use. The way of the future I'm afraid.
Apple may also be helping Google track users. I signed up for a trial of YouTubeTV on iOS, and my login magically appeared in Google Maps even though I’ve never logged into Google Maps before. Shocking
And of course, there’s the Google-owned Waze app that can (and will) track you even when it’s not running. Even if you’ve killed it. Why does Apple let that happen? A: $$$$$
You're wasting your money Google.
Apple has a market share of around 15% in phones and less than 5% in laptops and desktop computers. On what grounds could they be broken up?
Because M$ is evil and the enemy of all geeks and Apple isn't?
Cost free eBook I read (by iBook/Kobo/Amazon/ObookO/Gutenberg etc.): "The Green Odyssey" by Philip Jose Farmer.
What kind of shit are you? All the popular browsers have a default. On iOS, you have a choice of 4, including DuckDuckGo. On mac os, you have the same options.
I very rarely use any maps app on my phone. Neither Apple nor Google Maps. My goto app is Waze. I suppose Google could pull the iOS version, but Google could also blow up its HQ with explosives.
If Google can pay that much you know they are more then making that up. Being default is very important considering how many people would never bother to change it. In the US you could switch to Bing and never miss Google search. But beyond the US Google still rules the search engine space and does so because they pay to play.
How does a person get protein from sucking your balls? Do your balls have a leak?
He said in jest.
Of course news about a fake are Fake News.
I don't use iOS, so I don't know if the default search engine is readily changed, however...
Windows defaults to Bing and Edge. No one cares about the defaults and quickly changes it over to something else because it's trivial to do. Google does not pay MS probably due to some combination of:
1) MS won't do it for any price because they want Bing to suceed
2) Google already *knows* how ineffective having the default in Windows seems to be from evidence, so it's not worth much
With iOS, it's a big unknown. Google is not sure how much the loyalty to search engine will carry over in a mobile device where the search engine branding is somewhat mitigated and in general settings are a bit more tucked out of the way than desktop. Apple doesn't even pretend to have a horse in the race of search (yet), so they are perfectly willing to sell their default to the highest bidder for now.
XML is like violence. If it doesn't solve the problem, use more.
Anything that takes money away from Google is good. Those lying, data-harvesting, privacy-invading, non-innovating, idea-stealing, SJW sacks of shit need to go out of business fast.
don't give apple money. yahoo and MS should also not give apple money. let apple figure it out for themselves.
3) Microsoft is not allowed to.
Remember, Microsoft was found to be a monopoly and an abusive one at that, so they are looked at far more closely than anyone else, including Google and Apple (once a monopoly, always a monopoly).
About the worst Microsoft could do was offer cheap Windows licenses to those OEMs who do not change the defaults of Bing and IE - it was called Windows 8.1 with Bing. It was basically a free copy of Windows for low cost PCs.
OEMs were free to take it up, or pay for a regular Windows license - perhaps some OEMs struck deals with Google to make Google the default search provider, Chrome the default browser on their Windows installations. And yes, I've seen PCs like that with preinstalled Chrome and Google as default.
Google doesn't pay Microsoft, Google pays PC OEMs.
Are they looking to change it in iOS 11? Because Bing has been the default for a long time now...
i would rather bend you over and inject my rock hard 9.5 inch long, 8 inch circumference cock deep into your tight virgin ass until i blow my load inside of your bowels. don't worry i will allow you suck the feces, blood and semen off of my cock afterwards.
my last two iPhone and this iPad both defaulted to bing... everything Siri does has the powered by Bing logo... have to explicitly say "search google" to get her to do it
I'd like to see Google's reasons for this. I don't believe they think a significant number of people would choose something else if they didn't pay. Or maybe most people are so lazy or care so little that they would leave whatever the default search engine was.
This is not money for access but rather to make sure Bing can't have the default spot.
Some drink at the fountain of knowledge. Others just gargle.
Yes, it is. Following Microsoft's example, if you become big first and then abuse your monopoly power, the government won't have the financial resources to enforce the law and bring you to justice. Re: USDoJ vs. Microsoft. Fail. Fail. Fail.
Three billion dollars per year? Wow. Given that no company ever does anything unless it makes them money, is there anyone left who still thinks there is no value in collecting every person's private information and selling it to whomever will pay?
These days it seems the only way to exercise one's right to privacy is to disconnect from the internet, avoid any and all rewards and miles programs, pay for everything in cash, and live in a cave. How did this happen to the United States of America?