Why it matters: Ane of the reasons Apple is making so much money in the Services segment is a billion-dollar bargain with Google that keeps on giving, yr afterward year. It'southward estimated the latter will pay effectually $15 billion this year for the privilege of having its search engine remain the default option beyond the entire Apple ecosystem, merely most chiefly, iPhones.

By now it'south no clandestine that Google has been paying a hefty price to exist the default search engine on Apple devices. Not only that, just regulators have long been worried virtually the billion-dollar agreement between the two tech giants as they were probing them for multiple potential antitrust violations.

A new report from analysts at Bernstein reveals just how profitable this arrangement really is for Apple tree. In 2022 Google'south privilege cost the visitor $10 billion, and this sum is prepare to increase to $15 billion, which at outset glance seems similar a huge jump in a very short amount of time.

Every bit noted in the report, Google is boosting its offer to a level that ensures Microsoft wouldn't be able to come up with a higher bid, every bit the latter is just equally interested in pushing its Bing search engine to all platforms, especially iOS and Android. Subsequently all, Apple did use Bing in the past as the base for Siri's search on iOS and macOS, earlier information technology decided that it needed to offering a more consistent search experience, which is where Google outshines Microsoft'southward search engine.

Interestingly, the analysts believe Google's payments to Apple could likewise increase in 2022 to anywhere between $18 and $20 billion, which is a attestation to how valuable Apple tree'due south ecosystem is for search engine providers.

Concluding twelvemonth, the rumor mill spilled several reports that Apple tree is also making a backup plan in instance the deal with Google would e'er go sour, mayhap even building a search engine of its own. All the same, information technology looks like the two companies are perfectly fine with the current organization and probably volition continue information technology for as long every bit regulators will let it.

Image credit Christine Sandu