Mobile

Google paid Apple nearly $10 billion to get consumers to its platform

According to Goldman Sachs analysts, Google paid Apple nearly $10 billion in 2018 to get customers towards its search platform and this figure alone accounts to one-fifth of Apple’s revenue from the services segment. Analysts from the bank are trying to point that Apple has a serious reliance on rivals in regards to Services and the bank believes this strategy will not prove profitable in the future.

The fact that Google pays this much money is because it wants to remain the default search engine across all Apple devices. The analysts believe that Apple’s primary revenue source would change when the company will switch towards their own service similar to “Amazon Prime” and if the service launch is successful, Apple would be back on track to becoming a trillion dollar company again.

The bank also predicts that while Apple’s reliance on competitor will continue throughout 2019 but the growth in revenue from rivals will be slower. According to the analysts, regarding the Apple Prime media bundle:

Apple will need to add mid to high single digits growth back to Services revenues through successful launch of the ‘Apple Prime’ bundle including original video that we expect to be rolled out this Spring/Summer.

One begs to question how Apple will distinguish its service from the likes of Amazon and how much exclusive content will be available at the launch time. Do you think Apple’s own media service will help the company recover its lost revenues? Let us know!

Sponsored
Shaheryar Ehsan

Content Team Lead. Blogger, Content Developer, Social Media, and SEO Expert. Reach out: shaheryar.ehsan@techjuice.pk

Share
Published by
Shaheryar Ehsan
Tags: Apple

Recent Posts

Rumors Indicate iPhone 17 May Feature Unconventional Camera Design

Apple is reportedly preparing for a significant design overhaul with its iPhone 17 series, blending…

13 hours ago

First AI-Powered Teacher Launched in Pakistan’s Private School

Karachi: A private school in Karachi has unveiled Pakistan’s first AI-powered teacher, a groundbreaking move…

14 hours ago

Yahoo Surprises Users with Its Latest Android Launcher

Third-party apps have long been a staple of the Android ecosystem, but their appeal has…

15 hours ago

Phase-II Review of PTCL-Telenor Deal Finalized by CCP

ISLAMABAD: The Competition Commission of Pakistan (CCP) has completed its Phase-II review of Pakistan Telecommunication…

16 hours ago

Xiaomi’s SU7 Achieves New Production Record, Driving Q3 Growth

Xiaomi has shattered records by producing 100,000 vehicles in just 230 days. This is nearly…

17 hours ago

Teachers Can Now Access OpenAI’s Free AI Course

OpenAI, in collaboration with nonprofit organization Common Sense Media, announced on Wednesday the launch of…

18 hours ago