Google Estimated to Have Paid Apple Nearly $9.5 Billion in 2018.

Google paid Apple nearly $9.5 billion in traffic acquisition costs


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To remain the default search engine on iOS devices, Google paid Apple nearly $9.5 billion (roughly Rs. 67,000 crores) 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.

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.

Google pays device makers like Apple as traffic acquisition costs to be the default search engine.


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