Google Could Pay Apple Up to $15 Billion in 2021 to Remain Default Browser for iPhone, iPad, and Mac
(Photo : Image from Unsplash Website) Google Could Pay Apple Up to $15 Billion in 2021 to Remain Default Browser for iPhone, iPad, and Mac

Google could end up having to pay Apple up to $15 billion in 2021 to remain the default browser for iPhone, iPad, and Mac. It's been quite known that Google pays Apple quite a hefty sum every single year to ensure that it remains the default search engine on Apple's iPhone, iPad, and Mac.

Google on Apple Pay

As of the moment, a new report from Bernstein analysts suggests that the payment Google has to pay Apple might even reach $15 billion this coming 2021. This is a significant increase compared to the previous $10 billion that Google had to pay Apple back in 2020.

In a certain investor note, as seen by Ped30, the analysts at Bernstein are now estimating that Google's massive payment to Apple will increase up to $15 billion in 2021. The estimate rises to between a massive $18 billion to $20 billion in 2022.

Apple TAC Payments

The data is reportedly based on Apple's disclosures during its public findings as well as bottom-up analysis of Google's very own traffic acquisition costs or TAC payments. Analysts at Bernstein Toni Sacconaghi noted that Google is most likely paying to make sure that Microsoft won't outbid it.

According to the story by 9to5Mac, the analysts then outlined two different potential risks for the Google payment towards Apple. This includes regulatory risk and Google also simply deciding that the deal is not worth it anymore.

GOOG Payment to AAPL

It was noted that they see two potential risks to GOOG's payments to AAPL wherein one being the regulatory risk, which is believed to be real but is still most likely years away. It was noted that there could be a 4 to 5% impact on Apple's very own gross profits from a certain adverse ruling.

The second risk could be that Google chooses to stop paying Apple for them to be the default search engine altogether or even look to renegotiate terms and also pay less. Previous research also noted that GOOG is also most likely paying to ensure that Microsoft won't outbid them. It was noted that it is not implausible that Google could also revisit its particular strategy.

Read Also: Google, Microsoft, Apple Create WebExtensions Community Group: Expect Better Internet Browsing

Apple Retain Google

Apple's main decision to retain Google as its very own default search engine on iPhone, iPad, and Mac has repeatedly been met with criticism over the years. In a certain interview that took place earlier this year, Apple's very own senior director of global privacy Jane Horvath offered reasoning for this deal, despite privacy concerns. Apple has actually been secretly building its own search engine despite certain antitrust woes.

The payment coming from Google to Apple accounts for quite a significant amount of Apple's very own ever-important Services segment. Apple has reportedly emphasized Servers over the years to show investors that it still has other ways to grow both revenue and profit beyond just hardware sales.

Related Article: Google Messages New Feature | How to Zoom In

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Written by Urian B.

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