In a recent report by Bernstein’s Toni Sacconaghi, a huge chunk of Apple’s revenue comes from the Tech Giant; Google. Sacconaghi and his team, came to the conclusion that, Google may pay Apple around $3 Billion this year, as the part of the deal. This is a huge amount, no doubt; but eventually what Google pays Apple, is the profit amount which Google makes via the usage of the consumers on the Apple devices. Apple have many sources of revenue, including their sales of numerous devices, also through the purchases made on iTunes and Apple’s App Store. But eventually, Google pays a lot to Apple, and clearly is a huge part of the revenue.
Google doesn’t want to loosen its hold, and being a part of the Apple devices is one way to strengthen it. In 2014, Google paid Apple around $1 Billion and it was established through court documents and it ain’t no bluff. According to Google and Apple’s agreement, Apple was offered a cut of what Google made through the iPhone and iPad users. Clearly, the calculation is done. It’s been three years and both the markets are ever flourishing. It is only possible, that Google may indeed pay Apple the said $3 Billion.
Toni Sacconaghi also gives his insights on how Apple’s business would flourish, if other advertising sites and e-commerce sites are to follow Google’s footsteps. He made it very clear, that if such a thing happens, then Apple might be the top player in the upcoming scenario. But what if that’s not all, what if Apple has a motive behind going along with Google all the way. There can be endless possibilities, just one to think of is the transportation section, where Google is showing its interest in. Apple may tag along any time soon. Apple is to stay along with Google, until Google backs out.