Goldman Sachs: Google paid Apple $9.5 billion in 2018 to be Safari’s default search engine

“Analysts at Goldman Sachs estimate more than 20 percent of Apple’s burgeoning services revenue comes from Google,” Sara Salinas reports for CNBC.
“Apple could need to make up the difference with a ‘Prime’ bundle, Goldman Sachs said in a note published Monday,” Salinas reports. “‘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,’ the firm said.”
“Google pays device makers like Apple traffic acquisition costs to be the default search engine,” Salinas reports. “Goldman Sachs estimates Google paid Apple nearly $9.5 billion in traffic acquisition costs (TAC) during calendar year 2018, representing a third of Apple’s profit in the segment.”
Read more in the full article here.
MacDailyNews Take: Why does Google pay Apple billions of dollars annually to be Safari’s default search engine? Because Apple has the best customers in the world and Google’s Android doesn’t. Google needs access to discerning people with means because they simply don’t have it with the great unwashed who settle for IP- and privacy-trampling iPhone knockoffs.
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