Financial analysts estimate Google is paying Apple $15 billion to remain the default search provider on the Safari browser.
It’s known that Google pays a considerable amount for its default search position in Safari, but that number is said to reach even greater heights this year.
Google paid Apple $10 billion for the default search position in 2020. According to an investor note, analysts believe the number will increase by 50% in 2021.
Apple blog Ped30.com obtained a copy of the note, which reads:
“We now estimate that Google’s payments to AAPL to be the default search engine on iOS were ~$10B in FY 20, higher than our prior published model estimate of $8B. Recent disclosures in Apple’s public filings as well as a bottom-up analysis of Google’s TAC (traffic acquisition costs) payments each point us to this figure…
We now forecast that Google’s payments to Apple might be nearly $15B in FY 21, contribute an amazing ~850 bps to Services growth YoY, and amount to ~9% of company gross profits.”
It’s believed Apple is paying this amount to ensure it doesn’t get outbid by Microsoft.
The investor note goes on to say payments could approach $18 – $20B in 2022.
While the increase in payment is notable on its own, it’s also good for SEOs to know there will likely be no major disruptions to Google’s search volume over the coming years.
That would almost certainly be the case if Google lost its position as the default search provider for Safari.
In the United States, Safari currently holds 53% of mobile browser market share and 18% of desktop browser market share.
Yes, users can choose whichever provider they want as their default search engine, but the potential for lost search volume is huge.
Not to worry though, as it looks like Google and Apple aren’t about to break up any time soon.