In public, they compete strongly, and in secret, they share common interests and agreements. This is the relationship between... Google Apple, and apparently, Google is paying the iPhone maker many billions in an attempt to dominate the world's search advertising market and eliminate any competition.
Apple and Google
We are all aware that Google pays a lot every year to be the default search engine on devices Camel But that's not all, as University of Chicago professor Kevin Murphy inadvertently revealed during his testimony in the antitrust case supervised by the Department of Justice that the company pays about 36% of Google's search engine advertising revenues that occur through the Safari browser.
This indicates that every person who uses the Safari browser to search for anything through the Google search engine means more billions coming for Apple. This is why Google wants users to rely on the Chrome browser on their phones and devices instead of Safari, to dominate the entire browser market and also to reduce the amount it pays to its competitor, Apple.
How much does Google pay Apple annually?
Through a simple calculation, we can roughly know how much Google pays Apple annually as follows: Google’s total revenues from search advertising amounted to about $279.8 billion in 2022.
Since Google pays 36% of search advertising revenues through Safari, this means more than $20 billion during the year 2022, and do not forget to add the $18 billion that it pays to be the default search engine on Apple devices, which means that Google pays about $38 billion. Annually for the iPhone maker, whose revenues amounted to nearly $400 billion last year.
Finally, Google is under increased scrutiny by regulatory authorities regarding monopoly, as it faces accusations of using its resources to maintain its dominance in the market for browsers and search engines on various devices through confidentiality agreements that work to prevent fair competition.
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Artificial Intelligence 🤖 is almost finished. Believe me, it will disappear as strongly as it appeared
The origin of the strategy is to focus on a field and achieve the best return, and since the strategy of “buying a slave, but not raising him” is famous, the apple has bitten 18 billion without raising him and an investment that is difficult to achieve in the shadow of Google and Microsoft, so I see that the apple will not involve itself in the slave markets and will continue to spawn apple processors and tools for the masters, as it is more effective, less expensive and has a higher return. In addition to the famous expectation that the fashion of search engines will be negatively affected by generative intelligence tools in terms of use and profit in the future, if not now.
On the other hand, Google’s “business model” is different, as it moves its engine to provide it with profit tools and services, and this is fundamentally different from Apple’s business model. Therefore, the search engine is not just a website that you can copy or launch, but rather a complete ecosystem and a comprehensive change in the way the company works, and this is what it does not need. The apple now and tomorrow.
Hello and welcome, Suleiman Muhammad! 😊 Indeed, you find in Apple's strategy wisdom and focus on what is most important. The company always works to provide the best products for apple lovers 🍏. You are making an important point about future changes in the field of search engines, and this is what makes it better for Apple to invest in innovation and sustainable development. Regarding the “business model,” each company has its own approach, and Apple has a fixed vision of providing the best experiences for its fans. 🍎💡🚀