Will Google pay Apple $8-12 billion a year?

The U.S. Department of justice is trying to punish Google for its anticompetitive behavior in Internet search, but it could also hurt apple. Analysts estimate that Google pays $8 billion to $12 billion a year to make itself the default search engine on Apple’s iPhones and other devices, at the heart of the antitrust lawsuit filed by the U.S. Department of justice against Google last week. The deal is also at the heart of Apple’s services division, which has been the biggest contributor to Apple’s growth over the past few years. < p > < p > the U.S. Department of justice used the deal, which dates back 15 years, as an example of how Google used its huge profits to stop competition. For apple, it’s a lucrative deal, proving the value of reaching out to more than one billion device users worldwide. While the outcome of the Justice Department lawsuit is far from clear, analysts and investors say the loss of the deal could be quite a blow to apple, given that Google pays as much as a fifth of Apple’s total profits. “If the case goes through, Apple could be more financially affected than Google,” said Tony sacknagy, an analyst at Bernstein He estimates that Apple’s share price could fall as much as 20% if the deal with Google is cancelled altogether. But if Apple can offset the damage through other deals involving Google and its competitors, the impact could be much smaller. Last week, when the U.S. Justice Department filed a lawsuit against Google, investors seemed to ignore the threat, and Apple’s share price even bucked the trend. Mark stoker, chief executive of Adams fund, said the lawsuit could take a long time to reach a decision. Adam’s fund is one of Apple’s largest shareholders, and stoker questioned whether Google’s deal with Apple was really illegal. What’s the difference between that and consumer goods companies paying grocery stores for better shelf positions? “There is no doubt that if this kind of deal ends, it will have a negative impact on apple,” stoker said in an email But on the controllable side, he thinks, is the risk Apple faces. Apple did not respond to a request for comment on the U.S. Department of justice’s lawsuit, which did not charge apple with misconduct. Google has refuted the charges, saying users use its search engine because it is the best, not because they can’t find a replacement engine. Last week, Kent walker, Google’s chief legal officer, said in a blog post that there was nothing special about Google’s relationship with apple, “not different from the agreements many other companies traditionally use to distribute software.”. < / P > < p > the two companies first reached an agreement in 2005, when Steve Jobs was Apple’s chief executive, and Google search was the default engine in Apple’s Safari web browser on Macs. The deal expanded with the iPhone’s debut in 2007. The two companies have never published the exact terms of the deal. In 2016, in other lawsuits involving the search giant, information emerged that Google had paid apple a lot of money. In the course of the lawsuit, the court said Apple received $1 billion in payments from Google in 2014 as part of the deal. After that, analysts say, the number has soared, despite differences in their estimates of specific amounts. Analysts estimate that Google pays between $8 billion and $12 billion a year for the deal, which they say is 15% to 20% of Apple’s profits, according to the Justice Department lawsuit. Apple reported a profit of $55.26 billion for the fiscal year ending September 2019, which many analysts estimate has increased slightly in the past year. The company is due to report fiscal 2020 results on Thursday. < / P > < p > if the U.S. Department of justice’s antitrust actions disrupt Google’s deal with apple, Google will also face great risks. Apple Devices accounted for almost 50% of Google’s total searches last year, according to filing documents. Analysts, including sacnaji, speculated that Apple might develop its own search business to compete for advertising revenue, or even by acquiring duckduckgo. Duckduckgo is a small search engine that, like apple, emphasizes privacy. Any such move would add a potentially powerful competitor to Google, even though it still dominates search. < / P > < p > Apple’s deal with Google is essentially net profit, which supports Apple CEO Tim Cook’s efforts to change the direction of the company, as apple faces stagnant iPhone sales, which account for about half of the company’s revenue. IPhone sales peaked in fiscal 2015, while revenue peaked at $167 billion in fiscal 2018. Google’s deal accounts for a large part of Apple’s so-called services business, which surged from about $20 billion in fiscal 2015 to $53 billion estimated by analysts in the last fiscal year. Daniel Morgan, senior technology focused portfolio manager at synovus trust, a major shareholder in apple, said Apple might still be able to raise some of the money while multiple search engines paid for the placement. In Europe, for example, after losing a lawsuit against European regulators, Google now allows Android phone users to choose which search engine to use. Continue ReadingVideo Number assistant internal test online! Four functions let you send 1g video on the computer

Author: zmhuaxia