It's unclear if Google's supplanting Microsoft as the default search provider for Siri and Spotlight previous year is responsible for the purported price hike from Apple, though it may, at least partially, explain the sudden jump.
Why it matters. Given the fact that Safari is the number two browser (because of the iPhone), keeping Google as the default cements the search giant's mobile search dominance in reach - and advertising click volume.
Wall Street analysts have been very pleased with the growth of Apple's services revenue, which was reported to be $9.55 billion in Q3, up 31 percent since past year. Although Bing is the default search engine in Siri, most users do not utilize Siri to browse the Internet.
Google is allegedly paying Apple an astounding $9 billion (about Rs. 65,000 crores) in 2018 to remain the default search engine for iPhone's Safari program on iOS, the media revealed.
Hall does indicate that "Apple is one of the biggest channels of traffic acquisition for Google' and despite the high cost, it is quite likely that Google will agree to pay the increased sum". Tim Cook, Apple's CEO, is happy to tell anyone who will listen that his company is morally superior to those grubby companies such as Google and Facebook Inc. that make their money from harvesting people's digital data trails and using that information to target ads to every man, woman and infant.
Even though Google is shelling out a huge sum of cash to remain the default web search choice for iPhone users, it is a lucrative deal for Google, which generates most of its revenue from advertising.
Google does not disclose the specific amount of money it pays Apple. Looking ahead, Hall writes that Google could end up paying Apple as much as $12 billion in 2019 to keep Google as the default search option.