Google is paying $1billion for Apple from past three years to remain default search engine in iPhones and iPads. Now this year it is estimated to pay $3 billion to Apple. Google licensing fee make up a large bulk of Apple’s services business.
Google To Pay 3 billion Dollars to remain the default browser of Apple
According to the investor note, Google is paying out three times as much to Apple as it did in 2014 for the same privilege, with Google’s licensing fees making up a large bulk of Apple’s services business.
Apple has increasingly highlighted its services business for the core growth of the company.
“Court documents indicate that Google paid Apple $1B in 2014, and we estimate that total Google payments to Apple in FY 17 may approach $3B,” CNBC quoted analyst A.M. Sacconaghi Jr. as saying.
“Given that Google payments are nearly all profit for Apple, Google alone may account for five per cent of Apple’s total operating profits this year, and may account for 25 per cent of total company OP growth over the last two years,” he added.
According to Analyst A.M. Sacconaghi Jr “Court documents indicate that Google paid Apple $1B in 2014, and we estimate that total Google payments to Apple in FY 17 may approach $3B,”
On the other hand Apple is already to launch its new flagship device iPhone 8 into the market. As per the reports the prestigious iPhone 8 launch would be delayed to due to some technical issues. Apple is taking utmost care in building up the iPhone new model to give tough competition to Samsung, Oneplus and other leading mobile makers.