The success of Apple services depends on Google Pay
The success of Apple services depends on Google Pay

The Department of Justice's antitrust lawsuit against Google focuses on the deals the search giant has signed with Apple and other companies that have become the default search engine for mobile devices and web browsers.

As the default search engine for iPhone and iPad Safari browsers, Google can cover 36% of searches in the US.

The company signed the largest virtual search contracts with Apple, and Apple devices accounted for nearly half of Google's search traffic in 2019.

The Department of Justice cited wide recognition: Google pays Apple $ 8 to $ 12 billion annually as the default search engine for Apple products.

Apple is adding Google payments to its services business, which totaled $ 46.2 billion in fiscal 2019, accounting for 17.7% of the company's total revenue.

In 2017, Apple promised to double its revenue from services by 2020, and it kept that promise. The service business helped add to the company's market value, which topped $ 2 trillion that year.

When Apple talked about its service business, it focused on subscriptions that were sold directly to consumers, such as: (Apple Music), (Apple TV +) and (iCloud). However, the lawsuit indicated that it was a service, and it is a universal clause.

Service revenue includes sales of iTunes and streaming services, revenue from app distribution and in-app purchases through the App Store, AppleCare warranty and Google Payments license.

Assuming the Department of Justice's estimate of Google payments is correct, Google Payments accounts for 17% to 26% of iPhone manufacturers' revenue.

In other words, Apple's services - the company's future - are largely dependent on Google's payments.

Analysts said: We believe Google Payments contributed to the overall growth of Apple services more than many investors estimated.

Some analysts fear that the antitrust measures against Google may lead to changes that affect the profitability of iPhone manufacturers' services.

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