Apple Looks Down on Ads But Takes Billions From Google

Apple logo. Reuters

For representational purposes

If that wasn't enough, it's said that Google's payout to Apple could swell again in 2019 to $12 billion.

Even though Google is shelling out a huge sum of cash to remain the default web search choice for iPhone users, it is a lucrative deal for Google, which generates most of its revenue from advertising.

Yes, Google will be paying a staggering $9 billion (approx Rs 65,000 crores) this year for staying the default search engine on Apple iPhone's Safari browser. However, the only real number available is from 2014, due to court filings, which revealed Google paid Apple $1 billion for its search engine spot.

In June 2013 Apple made Bing the default search engine for Siri but not for the Safari browser on the iPhone. "Licensing" includes the money that Apple is collecting from its search contract with Alphabet Inc.'s Google and other sources, including a legal settlement with Samsung.

Since then, analysts have claimed that the annual fee has jumped considerably, with a report from previous year relaying that Google in 2017 paid Apple upwards of $3 billion. But it is true that in its recent financial reports to the Securities and Exchange Commission, Apple has listed "licensing" as the first in a short list of contributors to sales growth in its services segment. Apple Music has seen steady growth since its inception back in 2015. Furthermore, more users are paying the monthly fee of iCloud storage to gain more storage. Tap on that, then select from Google, Yahoo, Bing, or DuckDuckGo. Tim Cook, Apple's CEO, is happy to tell anyone who will listen that his company is morally superior to those grubby companies such as Google and Facebook Inc. that make their money from harvesting people's digital data trails and using that information to target ads to every man, woman and infant. But Google and Apple are not obliged to disclose the actual figure.

As to how much Google pays for that privilege, well, that's an interesting story.

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