Bernstein released an investment insight report yesterday, believing that Google would pay Apple US$18-20 billion every year in order to ensure that Google Search is the default search engine for products such as iPhones (Note: The current cost is approximately RMB 131.22-145.8 billion).
Bernstein said in the report: “We believe it is possible that the federal court will rule against Google and force it to terminate its search agreement with Apple. According to our estimates, the ISA paid by Google to Apple annually is worth 18-20 billion US dollars, accounting for 14-16% of Apple’s annual operating profit.”
Bernstein said that Apple’s services business unit has never disclosed relevant information, and Google has not disclosed data in this regard, but the agency believes that Google invests 22% of its advertising revenue in traffic acquisition costs (TAC), while Apple The company accounts for about 40% of this.
It was previously reported that Google pays Apple billions of dollars every year to set Google as the default search engine on Apple devices. Much of the trial was conducted behind closed doors, and officials did not disclose how much Google paid Apple.
Cue testified that the most recent deal between Apple and Google dates back to 2016, and when asked why Apple chose Google as its default search engine, Cue said “there was no effective alternative to Google at the time.”
“We make Google the default search engine because we’ve always thought it was the best, and we choose the best one and allow users to easily change it,” Cue said.
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