Alphabet Inc.’s Google is paying Apple billions of dollars to remain the default search engine on Apple’s devices such as iPhones, iPads, and MacBooks.
According to a report made by Toni Sacconaghi of Bernstein Research, Google is paying $3 billion per year for the said service. Three years ago, Google is only paying $1 billion to Apple, but because of the licensing fees that make up a large bulk of Apple's services, the payment was increased by $2 billion.
Is Google using Apple?
Toni Sacconaghi claims that Google is taking advantage of Apple’s iOS platform.
The search giant will continue to grow as the iOS user base expands. Google might also decide to stop paying Apple’s services and licensing fees if it feels confident enough that the search engine is preferred by most of the iOS users. Apple would not have any other options but to set Google as default for free.
Win-win situation for the two giant companies
Toni Sacconaghi said that 50 percent of the Google’s mobile search earnings came from Apple’s iOS devices. This means that the search giant might be scared to stop the licensing deal with Apple and its services. In short, it is a win-win situation for the two companies. The licensing revenue of Google is probably the largest or second-largest contributor to Apple’s business growth.
Apple’s iPhone 8 hype
In other news, Apple is set to launch its upcoming smartphone this September. The iPhone 8 is probably the most anticipated smartphone to arrive this year. New leaks, renders, and concept designs of the iPhone 8 are surfacing online almost every week, some of them are very predictable. One of the speculated features is the 3D recognition sensor.
The 3D recognition sensor is also called facial recognition sensor, with this new feature, users can unlock their smartphones by letting the device scan their faces. Some tech enthusiasts claim that the facial recognition sensor is more secure compared to the fingerprint sensors.
Apple might also ditch its iconic physical home button and replace it with a virtual button called “Home Indicator.” The Home Indicator will still have all of the functions of the previous home button like the fingerprint sensor.
The iPhone 8 is expected to have the largest display screen compared to its previous models. The company will be launching three new smartphones this year, namely the iPhone 7S, iPhone7S Plus, and the iPhone 8.
