Analyst estimates Google will pay Apple $9 billion this year to remain default search

“Goldman Sachs analyst Rod Hall said in a new research note that Google may be paying Apple $9 billion this year for the right to be the default search engine of Apple’s Safari mobile browser, predicting that the amount could rise as high as $12 billion next year,” Mark Sullivan reports for Fast Company.

“What’s notable this time around is that Hall’s estimate is three times higher than last year’s estimate,” Sullivan reports. “For Google, the iPhone is a major source of traffic to its search engine, and every one of those searches is an opportunity to show ads and collect targeting data.”

Read more in the full article here.

“The relationship between Google and Apple has always been interesting,” Peter Cao reports for 9to5mac.

“While Apple uses Google as the default search engine in Safari on iOS, the company also uses Bing in various other places such as searching the web via Siri,” Cao reports. “Despite this, Hall says that ‘Apple is one of the biggest channels of traffic acquisition for Google.'”

Read more in the full article here.

MacDailyNews Take: Because iOS users are worth far more than Android settlers.

Thankfully, Apple allows users to easily switch to privacy-respecting DuckDuckGo on Safari:

macOS:
1. Click Safari in the top menu bar.
2. Select Preferences.
3. Click on Search.
4. Select DuckDuckGo.

iOS:
1. Open Settings.
2. Navigate and tap on Safari.
3. Tap on Search Engine.
4. Select DuckDuckGo.

TGIF! Interns: TTK!

Prost, everyone! 🍻

SEE ALSO:
Bernstein: Google to pay Apple $3 billion this year to remain the default search engine on iPhones and iPads – August 14, 2017
Apple takes U.S. market share from Android, dominates with 8 iPhones out of 10 best-selling smartphones – July 26, 2018
Apple’s iPhone X made 5 times the profit of 600 Android OEMs combined – April 18, 2018
Apple’s iPhone captured 86% of global handset profits in Q417; iPhone X alone took 35% of global handset profits – April 17, 2018
Higher income U.S. states use Apple iPhones; lower income states use Samsung Galaxy phones – September 27, 2016
Apple’s App Store is destroying Google Play in services and subscriptions – April 18, 2018
Apple App Store users spent nearly double that of Google Play users in Q417 – January 26, 2018
Bernstein: Google to pay Apple $3 billion this year to remain the default search engine on iPhones and iPads – August 14, 2017
Higher income U.S. states use Apple iPhones; lower income states use Samsung Galaxy phones – September 27, 2016
iOS users are worth 10X more than those who settle for Android – July 27, 2016
Apple’s App Store revenue nearly double that of Google’s Android – April 20, 2016
Poor man’s iPhone: Android on the decline – February 26, 2015
Study: iPhone users are smarter and richer than those who settle for Android phones – January 22, 2015
Android users poorer, shorter, unhealthier, less educated, far less charitable than Apple iPhone users – November 13, 2013
IDC data shows two thirds of Android’s 81% smartphone share are cheap junk phones – November 13, 2013
CIRP: Apple iPhone users are younger, richer, and better educated than those who settle for Samsung knockoff phones – August 19, 2013
iPhone users smarter, richer than Android phone users – August 16, 2011/blockquote>

26 Comments

  1. MDN…Nice public service announcement.

    But if enough people actually do it, won’ t iOS be less valuable than $9 billion?

    You may say Apple doesn’t care, then why do it?

    “Oh what a tangled web for man, when he decides to be a fan”

    1. Nope, even if everyone did it tomorrow, Apple is selling thousands of iDevices Per second, with each one defaulting to Google’s search. Most people just leave it at that. Also consider, if Google didn’t pay, and Apple decided to go with DDG as the default, Google’s finances would suffer a pretty good sized hit.

      So they’re almost forced to pay 🙂

      1. You’re almost there…
        Wouldn’t Apple then be less valuable to Google, thus Google not be incentivized to pay $9 billion?

        Why would they if there’s no money in it for them.

        On the other hand…
        Apple makes less than $9 billion, even though they brag about privacy. The hypocrisy abounds!

    1. $9 billion is pocket change to Apple.

      Strategically, it makes no sense whatsoever to allow Google to be the default search engine. It undermines all the rhetoric about Apple caring about user privacy. Cook will happily cash in on user data when no one is looking. He knows most people are conditioned to not maintain security or privacy. So Apple will gladly cash in on the premium illusion of superiority while supporting the companies that have done the most to undermine consumer safety on the internet.

      The funniest part is professional Apple apologist MDN chooses to use annoying Google ads. Hypocrisy.

        1. Ah, but Squiggles, you are suggesting that commercial success should be based on who wins the competition for customers in a free market. Free markets are so passé! They need to be guided by the politically empowered among us.

          How dare you suggest that companies like Google, Facebook, Twitter, and Amazon have achieved their market position simply by being better than the competition. They should be hobbled to even the playing field, or even split up so that their competitors can make just as much money as the winners without having to compete.

          Allowing competition to pick the winners is so untidy and politically risky. Your donors might not win. Besides, the very idea of winners and losers sounds so (classically) liberal and elitist. Rigidly planned economies work so much better than free markets. Ask any Soviet citizen who survived the 1930s, or just look at the way that the recent “tax reforms” aided some politically favored Americans at the expense of others.

          The Chief Executive assures us that US businesses can’t compete in an international free market without government protection. All the American snowflakes will melt. The key to MAGA is for an all-powerful Federal Government to promote some businesses, states, and countries and punish others, based on political considerations.

          Science, and the funding of scientific research, cannot be allowed to rely on a free marketplace of ideas. It must serve political goals, regardless of any evidence to the contrary. How dare all those people with 25 years of post-doctoral research think they know more about their subject than Joe the Plumber does. Digging coal in West Virginia is all that anyone needs to develop and interpret complex computer models of global climate, or of national air and water pollution.

          The Leader also assures us that conservative values cannot compete in an unregulated marketplace of ideas; we need government watchdogs to control the content of the “free” press and social media to assure that they promote pro-government narratives and suppress “fake” (unfavorable) news.

          One measure of how committed this administration is to the free competition of ideas within a broadly-based national community is that it has nominated two Supreme Court Justices back-to-back who are not just graduates of similar Ivy League colleges and law schools but both graduated from the very same private high school!

          1. “Ah, but Squiggles, you are suggesting that commercial success should be based on who wins the competition for customers in a free market. Free markets are so passé!”

            Ah, but USER, you are just practicing snide elitist Libtard pablum! Huge NO, that’s exactly what Squiggles said and is absolutely correct. You want government controlled markets then go shop in stores with empty shelves, tolerate rations, high prices and long lines in Russia and Venezuela to name a few. Free markets have ruled for centuries, timeless and unlike fashion — NEVER go out of style.

            What is passé is your relentless couched sneering put downs of conservative beliefs or anything connected to the Republican Party. It’s old, predictable and one Melvin and Gotcha here is more than enough.

            You have to work really hard to be consistently partisan blind and WRONG to reality. Gold example: what Trump accomplished in less than two years, exactly what Obama FAILED to accomplish in eight years. Like to hear you DENY the facts of great economic progress detailed in the following article from CNBC, here:

            https://www.cnbc.com/2018/09/07/how-trump-has-set-economic-growth-on-fire.html

            And here:

            https://www.marketwatch.com/story/us-adds-201000-jobs-as-wage-growth-accelerates-to-nine-year-high-2018-09-07

            BTW, both news sources are non-partisan and not Fox News. Asked you this before and you dodged the question because you can’t even bring yourself to read or comment on either one. Just kills you, right? It goes against your total false narrative, well, I understand.

            Bottom line: we the people don’t care what you choose to deny and NOT believe. The best part is your misguided sleights and denial will NEVER change reality.

            I’ll leave you with this compliment. Congratulations! Your best lengthy tedious off topic deflective post of all time! Also, I count the most snide mocking put downs of conservatives — another record!

            Well done… 😆

          2. I wasn’t “putting down conservatives.” I was mocking men who call themselves conservative while attacking open competition, free trade, academic freedom, a free press, unregulated social media, and the very concept of objective truth. I’m not sure what to call their political philosophy, but it sure as hell isn’t conservatism.

            Nearly three years after the 2016 campaign began, I’m still astonished that so many apparently intelligent and patriotic Americans from the middle class are still supporting a spoiled New York prep school boy and draft dodger. The boy grew up to be a notoriously libertine playboy and limousine liberal. Then he decided there was more money to be made by rebranding himself as a reactionary reality star on TV and in politics. What he is selling now is directly opposed to historical conservative principles.

            If it weren’t already apparent, the former preppy’s loyalty to his own kind is clear when his notion of “cleaning the swamp” is to pack the Supreme Court with two other prep school boys who grew up in political families within 15 miles of the US Capitol, and who have spent either a majority (Gorsuch) or virtually all (Kavanaugh) of their working lives on the federal payroll.

            Oh, and yes I read the articles. They did not alter my prior opinion that Trump’s economic policies represent a massive rejection of traditional conservative and Republican principles. He is ballooning the federal deficit to create a short-term stimulus by setting up a long-term catastrophe. He’s the robber baron putting down conservatism, not me.

            1. I did not vote for a “a spoiled New York prep school boy.” I voted to take back the U.S. Supreme Court and to own it for a generation. The “spoiled New York prep school boy” was simply the only vessel to achieve this. I originally backed Ted Cruz which would have given me exactly the same result as per the Court. But, he would have lost to Crooked Hillary, likely, wilted like any other career politician under the onslaught of a corrupt leftist mainstream media in the pocket of the Democrat Party.

              President Trump’s list of conservative judges sealed the deal and earned my vote.

              I do not like the spending. I do like the tax cuts and massive reduction in over-regulation. I do like the foreign policy results which will serve the country well for decades to come.

              Only someone like Trump, as outside the establishment as Trump, could and can accomplish what Trump is accomplishing.

              So, again, I voted to take back the U.S. Supreme Court and to own it for a generation and that’s exactly what I’m getting because this president actually works to deliver on his campaign promises.

  2. Way ahead of you, MDN. I switched default search engines a long, long time ago on Macs and iOS devices. And I avoid using Google services, in general – no Gmail, etc. – because I like my recipients to be the first ones to read their email, not Google.

    Very occasionally I will open Google Maps to test the results against Apple Maps. But Apple Maps has been my go-to navigation aid for a long time, even when it wasn’t as polished as it is now.

    I do not care about the effect that large scale switching of default search engines away from Google might have on Apple revenues. Apple is not lacking for revenue and anything that hurts Google is good.

  3. Apple talks a good game about privacy, but is willing to overlook Google for nine billion bucks.

    And they’re defense is what?

    Maybe, “People are going to use it anyway, so we’re making money from it.”

    Sure, so they can keep their costs down for all the inexpensive gear we pay dearly to own.

  4. “Apple talks a good game about privacy, but is willing to overlook Google for nine billion bucks.”

    You either missed the point or chose to ignore it. The point is Apple sold it’s privacy soul for 9 billion…

    1. While I’m a privacy freak myself, I disagree. Apple is setting a default and those of us who care are free to (quite easily) change it. Most people use Google for search – they expect and want it because they are sheep. So Apple is taking a pragmatic (and smart) approach but giving ALL people what they want (Google or choice).

      Apple’s China policy is more of an issue for me, but you can’t change things there if you’re not in the game. Better to establish the foothold that leads to the revolution, much as Western values/culture (of the time) lead to the collapse of the Soviet Union, particularly w.r.t. Eastern Europe. Pragmatism is far more practical here.

      1. “Apple is setting a default and those of us who care are free to (quite easily) change it. Most people use Google for search – they expect and want it because they are sheep.”

        Granted most people “Google it” on the internet because of name recognition. So if it’s most popular, why does Apple need $9 billion? Seems Google has an advantage in price negotiations.

        Apple is winning on two fronts, legal pay to play big bucks and most popular search engine.

        However, I don’t believe most people know you can change the default search engine…

  5. The reason that Google is used by default is because it gives the best search results. I just did a test comparison with DDG which provided me with completely the wrong information!

  6. For a company like Apple who prides and sells itself on security & privacy isn’t this ethically and morally a bad practice? Taking money from a known unscrupulous data vampire?

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