Date:14/02/19
To remain the default search engine on iOS devices, Google paid Apple nearly $9.5 billion in traffic acquisition costs (TAC) in 2018, thereby contributing massively to the iPhone maker’s services revenue, estimates Goldman Sachs.
Apple is focusing on services revenue amid slowing iPhone sales in emerging markets like China.
According to a report in CNBC on Tuesday, what Google paid Apple in TAC represented a third of Apple’s profit in the segment.
Goldman Sachs warned that while the fees paid by Google will continue to make up a large portion of Apple’s services revenue into 2019, the rate of growth will be slower.
The firm suggested that to boost its revenue in the services segment, Apple needs to be less reliant on Google’s contribution.
“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,” Goldman Sachs was quoted as saying in a note on Monday.
Google pays device makers like Apple traffic acquisition costs to be the default search engine.
Google paid Apple nearly $9.5 billion in 2018 to remain default search engine on iOS devices
To remain the default search engine on iOS devices, Google paid Apple nearly $9.5 billion in traffic acquisition costs (TAC) in 2018, thereby contributing massively to the iPhone maker’s services revenue, estimates Goldman Sachs.Apple is focusing on services revenue amid slowing iPhone sales in emerging markets like China.
According to a report in CNBC on Tuesday, what Google paid Apple in TAC represented a third of Apple’s profit in the segment.
Goldman Sachs warned that while the fees paid by Google will continue to make up a large portion of Apple’s services revenue into 2019, the rate of growth will be slower.
The firm suggested that to boost its revenue in the services segment, Apple needs to be less reliant on Google’s contribution.
“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,” Goldman Sachs was quoted as saying in a note on Monday.
Google pays device makers like Apple traffic acquisition costs to be the default search engine.
Views: 351
©ictnews.az. All rights reserved.
Similar news
- Azerbaijani project to monitor disease via mobile phones
- Innovative educational system to be improved under presidential decree
- NTRC prolongs license of two TV and radio organizations for 6 years
- Azerbaijan establishes e-registry for medicines
- Azerbaijani museum introduces e-guide
- Nar Mobile opens “Nar Dunyasi” sales and service center in Siyazan city
- International conference on custom electronic services held in Baku
- OIC secretary general to attend COMSTECH meeting in Baku
- Azerbaijan develops earthquake warning system
- New law to regulate transition to digital broadcasting in Azerbaijan
- Azerbaijani State Social Protection Fund introduces electronic digital signature
- Intellectual traffic management system in Baku to be commissioned in December
- Tax Ministry of Azerbaijan started receiving video-addresses
- World Bank recommends Azerbaijan to speed up e-service introduction in real estate
- Azerbaijan to shift to electronic registration of real estate
