Google is paying $1billion for Apple from past three years to remain default search engine in iPhones and iPads. Now this year it is estimated to pay $3 billion to Apple. Google licensing fee make up a large bulk of Apple’s services business.
The research company says Google might delay dropping the licensing deal. It is because they are millions of Apple devices in the market and they contribute around 50 percent of Google’s search revenue on mobile.
According to Analyst A.M. Sacconaghi Jr “Court documents indicate that Google paid Apple $1B in 2014, and we estimate that total Google payments to Apple in FY 17 may approach $3B,”
He added, “Given that Google payments are nearly all profit for Apple, Google alone may account for five per cent of Apple’s total operating profits this year and may account for 25 percent of total company OP growth over the last biennium,” On the other side, Sacconaghi said Apple IOS devices contribute nearly 50 percent to Google’s mobile search revenue.
On the other hand Apple is already to launch its new flagship device iPhone 8 into the market. As per the reports the prestigious iPhone 8 launch would be delayed to due to some technical issues. Apple is taking utmost care in building up the iPhone new model to give tough competition to Samsung, Oneplus and other leading mobile makers