The fact that Google pays Apple to be the default search engine on the iPhone, iPad, and Mac has been known for a long time now, and the tech giant pays a hefty sum for this “favor''. A new report from Bernstein analysts states that the fee will increase by $5 billion this year.
It was estimated that in 2020 Google paid Apple $10 billion to keep its search engine as the default one, and for 2021 it is estimated that the price tag will grow to $15 billion. This information was first spotted by Ped30 in an investor note. The note also states that the hefty price tag will grow even more in 2022, reaching $18 to $20 billion. This information is based on “disclosures in Apple’s public filings as well as a bottom-up analysis of Google’s TAC payments.”
"We have noted in prior research that Google is likely paying to ensure Microsoft doesn’t outbid it.” — Analyst Toni Sacconaghi
According to Bernstein analyst Toni Sacconaghi, Google is pouring billions of dollars into Apple in order to ensure Microsoft won’t outbid it. If so, this could make the iPhone’s native search engine Microsoft Bing.
Recommended For You
Google Search could become the default search engine of only one mobile operating system
Apple is striving to increase its revenue from Services, which also accounts Google's fee. According to 9to5Mac, the Cupertino company wanted to proof its investors that it can be profitable not only by selling hardware.
Sacconaghi says that there are two potential risks to the increase in price. The first one is a regulatory risk, which means that Google might lose its license to operate. Even so, he states that this is probably years away.
The second and more probable risk is Google choosing not to pay the high amount anymore. This could mean Google renegotiating the price with Apple in order to pay less, or refuse to pay altogether. If so, Apple will have a tough choice to make. Does it go with Microsoft at the risk of potentially losing market share, as plenty of people won’t like this decision, or does it offer a lower rate to Google, so it keeps its services revenue high? This is a choice that the company might soon have to make.
Grab the Pixel 10 at Mint Mobile for $450 off
$349
$799
$450 off (56%)
Mint Mobile now sells the Google Pixel 10 with a massive $450 discount. The promo is available on select color variants with 128GB of storage. You also get a 12-month unlimited data plan for $180 instead of $360.
Grab the pro-grade, compact Pixel 10 Pro at Mint Mobile with a 12-month unlimited plan, and you can save a huge $475. The data plan comes with a discount, too: 50% off, to be exact.
The high-end Gemini AI-enhanced Pixel 10 Pro XL is now available with a mind-blowing discount. You can now save $700 on the phone, plus 50% off unlimited 12-month plans.
The foldable Pixel 10 Pro Fold is another standout holiday offer. Right now, you can get the device for $400 off at Mint Mobile. On top of that, you save $180 on 12-month unlimited data plans.
Iskren, a former tech journalist at PhoneArena, has been passionate about technology since his childhood, sparked by his early experiences with phones like the Ericsson T28 and Sony Ericsson P910i. After earning a bachelor's degree in Media and Journalism, he turned his fascination with smartphones into a career, with a particular interest in Apple and Motorola. Outside of his tech pursuits, Iskren enjoys watching TV series, movies, driving, and has a deep passion for cars and Formula 1. He looks forward to the future of mobile tech, particularly the potential of rollable smartphones.
COMMENTS (9)
COMMENTS (9)
All comments need to comply with our
Community Guidelines
PhoneArena Community Rules
A discussion is a place, where people can voice their opinion, no matter if it
is positive, neutral or negative. However, when posting, one must stay true to the topic, and not just share some
random thoughts, which are not directly related to the matter.
Things that are NOT allowed:
Off-topic talk - you must stick to the subject of discussion
Offensive, hate speech - if you want to say something, say it politely
Spam/Advertisements - these posts are deleted
Multiple accounts - one person can have only one account
Impersonations and offensive nicknames - these accounts get banned
To help keep our community safe and free from spam, we apply temporary limits to newly created accounts:
New accounts created within the last 24 hours may experience restrictions on how frequently they can
post or comment.
These limits are in place as a precaution and will automatically lift.
Moderation is done by humans. We try to be as objective as possible and moderate with zero bias. If you think a
post should be moderated - please, report it.
Have a question about the rules or why you have been moderated/limited/banned? Please,
contact us.
![Some T-Mobile users might be paying more starting in March [UPDATED]](https://m-cdn.phonearena.com/images/article/176781-wide-two_350/Some-T-Mobile-users-might-be-paying-more-starting-in-March-UPDATED.webp)
FCC OKs Cingular\'s purchase of AT&T Wireless
Things that are NOT allowed:
To help keep our community safe and free from spam, we apply temporary limits to newly created accounts: