Google may pay Apple about 1.65 trillion yen to protect the position of 'Safari's default search engine'
For search engines, being adopted as the 'default search engine for browsers' is a great advantage in making money.
Bernstein says Google's FY21 payments to Apple might reach nearly $ 15B | Philip Elmer-DeWitt
https://www.ped30.com/2021/08/25/apple-google-payments-15b/
Analysts: Google to pay Apple $ 15 billion to remain default Safari search engine in 2021 ―― 9to5Mac
https://9to5mac.com/2021/08/25/analysts-google-to-pay-apple-15-billion-to-remain-default-safari-search-engine-in-2021/
When users use search engines such as Google Search , Microsoft Bing , and Yahoo! Search , they often go through a web browser. That's why Google has adopted Google search in its own browser Chrome , Microsoft has adopted Bing in Edge , and DuckDuckGo plans to release a desktop version application that can be used as a browser.
In addition, Safari, which was developed by Apple and boasts a large share as a browser used on iPhone, iPad, Mac, etc., has been equipped with Google search as the default search engine for many years. It is known that Google is not the default search engine of Safari for free, but is paying a huge contract fee to Apple, and the amount is increasing year by year. For example, the contract fee was 1 billion dollars (about 110 billion yen) as of 2014, but it is predicted to be '3 billion dollars (about 330 billion yen) annually' in 2017 ...
Why is it win-win when Google pays Apple to search for more than 300 billion yen a year, which triples in three years? --GIGAZINE
It is reported that in 2018, it will be 'estimated to be over $ 9 billion (about 1 trillion yen).'
Google is paying an estimated over 1 trillion yen to become Safari's default search engine-GIGAZINE
And new, Toni Sacconaghi, an analyst at AllianceBernstein, one of the world's leading asset managers, said in a report to investors, 'Google paid $ 10 billion to Apple in 2020. It is estimated to be (about 1.1 trillion yen) and could reach 15 billion dollars (about 1.65 trillion yen) in 2021. ' According to Sacconaghi, this $ 15 billion is expected to reach 9% of Apple's gross profit (gross profit) in 2021.
Sacconaghi points out that there are some risks that Google has paid Apple a huge contract to become Safari's default search engine. The expected risks are as follows.
1: Risk of government regulation
It's possible that Google will continue to maintain its position as Safari's default search engine, and government-controlled scenarios are real. If regulated, Apple could lose 4-5% of its gross profit, but it's expected that it will be years away if it actually happens.
2: Risk of Google stopping payment of contract money
Sacconaghi points out that Google is likely to pay Apple more contracts year after year as Microsoft aims to make Bing the default search engine for Safari. However, if the contract fee continues to rise as it is, Google may reconsider the contract.
There are criticisms that Apple is using Google search instead of DuckDuckGo, which is focusing on privacy as Safari's default search engine. In an interview with Apple's Chief Privacy Officer, Jane Horvath, in a January 2021 interview, 'Google is currently the most popular search engine. We include support for DuckDuckGo as well as Google. And recently we have started to support Ecosia. '
In recent years, it has been reported that Apple is developing its own search engine in response to the growing suspicion of violating the Antimonopoly Act against Google.
Report that Apple is developing 'in-house search engine' at a rapid pace --GIGAZINE
Related Posts:
in Mobile, Web Service, Posted by log1h_ik