Apple’s iOS device are touted to contribute to almost half of Google’s search revenues of the mobile segment. With such a large contribution, Apple is set to acquire licensing fees from Google, on account of the popularity of the search engine. The deal is predicted to be of almost $3 bn each year, just to remain the default search engine on iOS devices. Back in 2014, Google reported paid $1 bn annually for the same. However, the surging mobile traffic, and consequently the rising revenues due to the same, foretell a growth to the three billion number. Google alone is said to account for over 5% of Apple’s profit this year.
Apple has recently generated investor focus to its Services, which could lead to as much as 13% of their complete revenue the upcoming year. When Apple executives mention Services, they like to focus on revenue collected by Apple software on the App Store or the money made through subscriptions like Apple Music. However, reports suggest that the revenue obtained through Google may realistically be the largest or second-largest contributor to the growth of Services. Though it looks like Google has no choice but to go ahead with the deal, Sacconaghi reported that Google might back away if they feel confident that Apple may have no option but to include the Google search engine due to its popularity.