Above all, raise your hands if you don’t use internet browsers. We are sure that no hands are raised there, right? So, it’s needless to say that internet browsers have become an integral part. For instance, you’ve to find out the recipe of steak or how-to of painting, the browser is there to help. Consequently, it’s pretty evident that browsers are essential. So, even the biggest tech rivals, Google and Apple came forward regarding the browsers. In this article, we are subsequently sharing about Google pays Apple to stay the default search engine on the Safari web browser.
Google to Apple
Above all, Google pays Apple to stay the default search engine on the Safari web browser. In the same vein, it’s essential to note that Safari is Apple’s search engine Apple & Google Join Hands for Search Engine Deals. Similarly, this setting will create the barrier of expansion and entry for the rivals and new entrants. To clarify, we are talking about the search engine market.
That is to say that Apple never makes a low deal. So, they have received 1.2 billion pounds for keeping Google as the default search engine. However, this setting was to imply globally. Also, Google’s rivals aren’t small either, such as Bing, Yahoo, DuckDuckGo. This is because they are brainchildren of Microsoft and Verizon Communications.
Consequently, these search engines also pay Apple to stay on the search engine radar of Apple devices. Even more, according to Bernstein analyst, Apple earns more than $9 billion annually from their license arrangements. In addition, the gross margin tends to be around 90% solely from Google. Also, the pace of iPhone upgrading has become slow in previous years.
So, this is the probable cause that Apple is generating revenues from the service department. Therefore, the enforcement authorities need to have a say in this arrangement. The authorities need to demand the choice screens, so users can set the default search engine that suits them. In contrast, it will reduce the revenues for Apple from the search engine arrangements Apple & Google Join Hands for Search Engine Deals.
The Search Engine Deal
Above all, this search engine deal was made back in 2018. In the year 2018, Google paid $9 billion and $12 billion in the year 2019. As a result, Google will become the search engine on Mac, iPad, and iPhone on Safari. So, with this arrangement, Google is earning significant revenues by staying the default search engine on Safari browser.
In the same vein, Google’s revenue generation is higher than investment. According to Business Insider, Apple has become the traffic acquisition for Google. Back in 2017, Apple got $3 billion but later, it was revealed that $1 billion.
Tim Cook’s Reliance On Google For Apple Users
In this tech-savvy world, the partition of iOS and Android users is pretty colossal. Likewise, Google and Apple are concurrently working on new features. For instance, Apple removed YouTube and Google Maps from their phones as they are Google’s apps. In contrast, both rivals understand the captivating benefits with mutual agreements.
According to Apple, Google is the best search engine platform for iOS users. Irrespective of security and privacy issues regarding data, Apple still considers Google the apt choice. However, people are questioning how Apple can let Google be the search engine platform despite these issues. Well, Google is undoubtedly paying considerable sums to Apple on an annual basis.
Secondly, Tim Cook thinks that there is no alternative other than Google. In the same vein, he believes that only Google has an optimal user experience. The overall experience will be better. Also, for privacy and security, he feels that Safari is the primary browser and Google isn’t the issue. Further, Safari has the built-in protection features.
Most importantly, Safari has private web browsing and tracker prevention available that ensures safe user experience. Also, this is irrespective of the search engine. In the same vein, there will be no ads yet there are new features rolling in for secure user experience.
Does Apple Provide Something?
Previously, it was considered that Apple is the independent authority, but the truth has been revealed. That is to say, because Apple uses Google servers as well. In addition, Apple was previously using the Microsoft Azure and Amazon web services as the cloud service. However, they are now using Google’s cloud services for remote data storage. Also, Google’s cloud service provides better storage management.
The Bottom Line
With this article, we can clearly see that Google and Apple have the stories to share. So, we think that the long rivalry of Apple and Google is over or it’s just corporate agreements. In the same vein, Apple and Google; both are harnessing the benefits with this arrangement. Firstly, Google is earning billions from the search engine position. Secondly, Apple gets top-notch cloud storage from Google. So, the arrangement is mutually beneficial for sure!