As two of the biggest tech companies in the world, it’s safe to assume that Google and Apple have a fierce rivalry. The battle between iOS and Android, according to Eric Schmidt, the executive chairman at Alphabet Inc., is a “defining fight of the computer industry”.
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So how is Apple making so much money off Google?
Rewinding back to a few years ago, when the war between the 2 giants started to intensify, Apple pulled a power move on Google by removing Google apps like YouTube and Google Maps from the iOS home screen, which led to huge losses on those two platforms.
Perhaps, Google’s existence as a big company today is contributed to its search engine most precisely to its search-based advertising, which makes a lion’s share of Google’s revenues. Apple’s Safari has always had Google as its default search engine. Although, other search engines like “Yahoo” and “Bing” are available, Apple has always had Google as iOS’ go-to search engine.
As competitors you’d assume if Apple switches engines, Google would make a huge loss, and that is absolutely true. But, not with the hefty amount of money paid to Apple by Google ever year.
According to analyst A.M Sacconaghi Jr. in a Bernstein note, Google is on the verge of paying Apple a whopping $3 billion, which is a more than double the amount paid in 2014, when they paid them $1 billion.
Well, according to Forbes, Google makes almost $19.1 billion in profit off search-based advertising.
With such a high revenue, ‘Apple’ will be cashing in the checks for a very long time to come.
