Make An Offer You Can’t Refuse: Google Paid Apple $9.46 Billion In 2018 To Remain Safari’s Default Search Engine

Tech Giant Google paid Apple $9.46 billion as a part of advertising costs to remain Apple’s Safari browser’s default search engine, the Times of India has reported.

According to a Goldman Sachs analyst, Todd Hall, the amount was paid as Traffic Acquisition Cost (TAC). Hall reveals the payment had contributed to 20 per cent of Apple’s services business income.

“Not only is TAC large but it is still growing as people search more on mobile devices.” This revenue from Google is expected to grow to $12.2 billion next year and further to $15.6 billion in 2021,” a CultofMac report quotes Hall.

The report says that Goldman Sachs Global Investment Research also gave a breakup of sources of income of Apple from the many verticals in its services business. Apple earned approximate $11.8 billion from the Apple store, and the amount is expected to reach $15.8 billion by 2021. Apple music also chipped in with $3.1 million last year and is expected to earn $5.4 billion in the next two years.

Various analysts have predicted that the services business and not iPhones, would continue Apple’s rise. With numerous problems remaining for iPhones, one of the solutions provided was to reduce the cost of the phones. During a recent interview, CEO Tim Cook said, “We will have to see about that”, while responding to questions of the company’s plans to reduce iPhones prices.