Apple may have been paid $9.5B by Google in 2018 to stay default Safari search option

Posted:
in General Discussion edited February 12
Google may have paid Apple close to $9.5 billion in 2018 to remain the default search engine in Safari, Goldman Sachs analysts said in an investor memo this week.

Safari Google search


That would account for over 20 percent of Apple's services revenue, the memo indicated according to CNBC. Apple doesn't break down its services results, which also include money from businesses like Apple Music, iTunes, and the App Store.

Google's payments combined with Apple's cut of App Store sales made up 51 percent of 2018 services revenue, and 70 percent of gross profits, the analysts calculated.

Nevertheless, Google's share of the services segment is expected to decline. To add "mid to high single digits growth" back to services revenue, it's argued Apple will need a successful launch of a rumored subscription bundle including Apple Music, Apple News Magazines, and an unnamed video streaming service. The package should arrive in the first half of the year, possibly as soon as March or April.

Publishers are allegedly resisting Magazines however, since Apple is demanding half of subscription revenue while refusing to share as much customer data as publications are used to.

Multiple research firms have predicted that Apple will transition towards becoming more of a services company. That could prove critical to its survival -- the global smartphone industry is beginning to plateau and even decline, and Apple is still overwhelmingly dependent on the iPhone. In the December quarter iPhone revenues fell 15 percent year-over-year, and they aren't expected to resume growth until new models ship this fall.

Morgan Stanley analyst Katy Huberty recently argued that an Apple service bundle could push the company back to a $1 trillion valuation.

Comments

  • Reply 1 of 19
    payecopayeco Posts: 310member
    On its own, Apple’s payout from Google would be a Fortune 300 company and its margins are literally 100%. 
    SolilolliverradarthekatrandominternetpersoncornchipAppleExposedwatto_cobra
  • Reply 2 of 19
    lkrupplkrupp Posts: 7,162member
    Gotta wonder why Google pays Apple for this. Are people so stupid they can’t figure out how to make Google the default? Don’t most people actually want Google as their search engine.  I see posts on the Apple discussion forums from users who want to know how to change Safari back to Google when they accidentally set it to Bing. Don’t see many asking how to get rid of Google. I mean it’s great money for Apple but why?
  • Reply 3 of 19
    payecopayeco Posts: 310member
    lkrupp said:
    Gotta wonder why Google pays Apple for this. Are people so stupid they can’t figure out how to make Google the default? Don’t most people actually want Google as their search engine.  I see posts on the Apple discussion forums from users who want to know how to change Safari back to Google when they accidentally set it to Bing. Don’t see many asking how to get rid of Google. I mean it’s great money for Apple but why?
    Obviously Google’s own research indicates enough people would just use whatever the default is or Google wouldn’t pay them this money. They’re not forking over $10 billion a year to one of their arch rivals out of generosity.

    Google pays Mozilla a substantial amount of money to keep Google the default search engine in Firefox. If you’re using Firefox, you’re savvy enough to know how to change your default search engine. There is just a substantial amount of people that don’t care and will use the default.

    Have you used another search engine lately? Duck Duck Go is pretty damn good.
    edited February 12 lolliverfastasleepbaconstangchristopher126mike54radarthekatmuthuk_vanalingamAppleExposedwatto_cobra
  • Reply 4 of 19
    Easy money, and the first setting I change when I install the OS new. 
    lolliverleavingthebiggrandominternetpersonAppleExposedwatto_cobra
  • Reply 5 of 19
    lkrupp said:
    Gotta wonder why Google pays Apple for this. Are people so stupid they can’t figure out how to make Google the default? Don’t most people actually want Google as their search engine.  I see posts on the Apple discussion forums from users who want to know how to change Safari back to Google when they accidentally set it to Bing. Don’t see many asking how to get rid of Google. I mean it’s great money for Apple but why?
    Quid pro quo.

    Apple also doesn’t stop the auto play of ads (videos).  The unmentioned deal that makes Google a bundle.
    cornchip
  • Reply 6 of 19
    $9.5 billion seems a little high. Google's total traffic acquisition costs paid to distribution partners (as distinguished from Google Network Members) was $12.6 billion for 2018.
    randominternetpersonwatto_cobra
  • Reply 7 of 19
    So Apple are 100% focused on their users privacy are they? Yet the majority of iPhone users who don’t change their default search engine have been sold to Google. In secret. 

    Yeah, don’t trust Apple. #twofaced
    Johan42muthuk_vanalingam
  • Reply 8 of 19
    Each new iOS device I get gets configured from the most recent backup of the previous device which means Google is never my default search engine. 
    AppleExposedwatto_cobra
  • Reply 9 of 19
    payeco said:

    Have you used another search engine lately? Duck Duck Go is pretty damn good.
    DuckDuckGo is on all my devices and my GF's.

    I know the focus is on what a shitty company FaceBook is right now, but Google is the most onerous company as far as data harvesting/collection. 


    People are daft to use Google search, Gmail, Docs, Maps, or any Google products.

    Apple should buy DuckDuckGo. And put their money where their mouth is! :)

    At least there should be a consensus/legislation not to track our children. No? 

    How about not allowing the telecoms to location track us? Or again at least don't track our kids.

    Comments?
    edited February 12 mike54fotoformatwatto_cobra
  • Reply 10 of 19
    Multiple research firms have predicted that Apple will transition towards becoming more of a services company. That could prove critical to its survival -- the global smartphone industry is beginning to plateau and even decline, and Apple is still overwhelmingly dependent on the iPhone. In the December quarter iPhone revenues fell 15 percent year-over-year, and they aren't expected to resume growth until new models ship this fall.
    Er, define “dependent on”. iPhone may be a large percentage of their profits, but even the other lines are larger than othe entire tech companies. 
    watto_cobra
  • Reply 11 of 19

    kkqd1337 said:
    So Apple are 100% focused on their users privacy are they? Yet the majority of iPhone users who don’t change their default search engine have been sold to Google. In secret. 

    Yeah, don’t trust Apple. #twofaced
    You’re high, get real. Google is still considered the better search engine, and leaving it default doesn’t negate Apple’s position on what Apple itself does with your data, which is what they advertise. You are always free to use whatever search you want. Further, with platform ad and cookie blockers now a feature (I use the excellent 1Blocker), you can take further steps to protect yourself. 
    AppleExposedwatto_cobra
  • Reply 12 of 19

    kkqd1337 said:
    So Apple are 100% focused on their users privacy are they? Yet the majority of iPhone users who don’t change their default search engine have been sold to Google. In secret. 

    Yeah, don’t trust Apple. #twofaced
    You’re high, get real. Google is still considered the better search engine, and leaving it default doesn’t negate Apple’s position on what Apple itself does with your data, which is what they advertise. You are always free to use whatever search you want. Further, with platform ad and cookie blockers now a feature (I use the excellent 1Blocker), you can take further steps to protect yourself. 
    His assertion isn’t wrong.
    muthuk_vanalingam
  • Reply 13 of 19
    kkqd1337 said:
    So Apple are 100% focused on their users privacy are they? Yet the majority of iPhone users who don’t change their default search engine have been sold to Google. In secret. 

    Yeah, don’t trust Apple. #twofaced

    Hardly. Apple doesn’t give Google your Apple ID, phone number, device ID/serial number, IMEI or anything that would identify you. In short, they get a lot of anonymous requests.
    AppleExposedwatto_cobra
  • Reply 14 of 19
    Duck Duck Go has gotten a lot better over the last year or so... at least in my experience. Wish it were the default for Apple customers.

    If that $9.5b is real... not sure how Apple can turn that down.  Was hoping to see them go another route and ween themselves off Google but no one is turning down that amount of money. 
    watto_cobra
  • Reply 15 of 19
    radarthekatradarthekat Posts: 3,093moderator
    lkrupp said:
    Gotta wonder why Google pays Apple for this. Are people so stupid they can’t figure out how to make Google the default? Don’t most people actually want Google as their search engine.  I see posts on the Apple discussion forums from users who want to know how to change Safari back to Google when they accidentally set it to Bing. Don’t see many asking how to get rid of Google. I mean it’s great money for Apple but why?
    Quid pro quo.

    Apple also doesn’t stop the auto play of ads (videos).  The unmentioned deal that makes Google a bundle.
    There you have it.  It’s not just to be the default, it’s what Apple might do to lock down Google if there were no partnership. 
    watto_cobra
  • Reply 16 of 19
    payeco said:
    lkrupp said:
    Gotta wonder why Google pays Apple for this. Are people so stupid they can’t figure out how to make Google the default? Don’t most people actually want Google as their search engine.  I see posts on the Apple discussion forums from users who want to know how to change Safari back to Google when they accidentally set it to Bing. Don’t see many asking how to get rid of Google. I mean it’s great money for Apple but why?
    Obviously Google’s own research indicates enough people would just use whatever the default is or Google wouldn’t pay them this money. They’re not forking over $10 billion a year to one of their arch rivals out of generosity.

    Google pays Mozilla a substantial amount of money to keep Google the default search engine in Firefox. If you’re using Firefox, you’re savvy enough to know how to change your default search engine. There is just a substantial amount of people that don’t care and will use the default.

    Have you used another search engine lately? Duck Duck Go is pretty damn good.
    Agreed.  Bing works just fine for me.  I should give Duck Duck Go a chance.  People talk about "phones" as a mature platform with little to distinguish the top players; Search is in the same boat.
    watto_cobra
  • Reply 17 of 19

    kkqd1337 said:
    So Apple are 100% focused on their users privacy are they? Yet the majority of iPhone users who don’t change their default search engine have been sold to Google. In secret. 

    Yeah, don’t trust Apple. #twofaced
    How is it "secret"?  It says explicitly on the search page "Show Google Results."  
    AppleExposedcornchipwatto_cobra
  • Reply 18 of 19
    lkrupp said:
    Don’t most people actually want Google as their search engine.

    No, No and No.

    On my mac, the first thing I do is set my homepage to either DuckDuckGo or Startpage.
    I don't want anything to do with Google unless I really, really have to. Most of the Google domains are blocked at my firewall or in my hosts file.
    On my iPhone, I so rarely use search that I don't bother. I have all the sites I usually need to visit known to Safari anyway.

    Naturally, YMMV
    watto_cobra
  • Reply 19 of 19
    AppleExposedAppleExposed Posts: 1,185unconfirmed, member
    Turn up the heat! Every year Apple charges more apparently.

    lkrupp said:
    Gotta wonder why Google pays Apple for this. Are people so stupid they can’t figure out how to make Google the default? Don’t most people actually want Google as their search engine.  I see posts on the Apple discussion forums from users who want to know how to change Safari back to Google when they accidentally set it to Bing. Don’t see many asking how to get rid of Google. I mean it’s great money for Apple but why?

    You'd be surprised how many people don't give a sh** who returns their results. At work they use Bing when Internet explorer is open. They don't think "Oh shoot this ain't Google! Let me close the window." So in theory if Apple made DDG default, they would gain 100s of millions of users overnight.

    carnegie said:
    $9.5 billion seems a little high. Google's total traffic acquisition costs paid to distribution partners (as distinguished from Google Network Members) was $12.6 billion for 2018.

    I don't doubt the number because Apple has the most valuable users in the world.

    kkqd1337 said:
    So Apple are 100% focused on their users privacy are they? Yet the majority of iPhone users who don’t change their default search engine have been sold to Google. In secret. 

    Yeah, don’t trust Apple. #twofaced

    Try harder. Apple doesn't data mine users. You're not enlightening anyone on anything.

    #NiceTry

    lkrupp said:
    Gotta wonder why Google pays Apple for this. Are people so stupid they can’t figure out how to make Google the default? Don’t most people actually want Google as their search engine.  I see posts on the Apple discussion forums from users who want to know how to change Safari back to Google when they accidentally set it to Bing. Don’t see many asking how to get rid of Google. I mean it’s great money for Apple but why?
    Quid pro quo.

    Apple also doesn’t stop the auto play of ads (videos).  The unmentioned deal that makes Google a bundle.
    There you have it.  It’s not just to be the default, it’s what Apple might do to lock down Google if there were no partnership. 
    What always makes me laugh is, if Google would have never betrayed Apple, they would have been more successful and wouldn't have to bleed this money. LMAO!!!!!!

    Don't bite the Apple that feeds you!
    watto_cobra
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