It is a well-known fact that Google is paying loads of cash to Apple for featuring its search solution on iPhone, iPad, and other products. While neither confirmed nor denied, the deal exists; however, the amount Google is paying Apple is unknown. There were some estimates that mentioned an amount of $9 billion, and $12 billion starting 2019, and now a different source is talking about rather similar numbers.
$9.5 billion is what Goldman Sachs estimates that Google paid Apple in 2018. That’s roughly one-fifth of Apple’s Services revenue. All of that, just for Apple to keep Google as the default search engine on its mobile devices.
The report also touches on the idea of a Prime media solution, something that has been rumored recently.
Apple will need to add mid to high single digits growth back to Services revenues through successful launch of the ‘Apple Prime’ bundle including original video that we expect to be rolled out this Spring/Summer.
Apple is already streaming music via its Apple Music offering, and has been rumored to enter the movie streaming business as well. Tim Cook didn’t confirm anything specific but hinted that we will see new Apple services arrive this year.