3 ms·
How much of this is Google's increased revenue sharing from search on iPhone? From looking at a few news articles, looks like revenue sharing increased from: $
by ariwilson 8y ago
How much of this is Google's increased revenue sharing from search on iPhone?
From looking at a few news articles, looks like revenue sharing increased from:
$1B ('14) -> $3B ('17) -> $9B ('18) -> $12B ('19)
Example article: http://fortune.com/2018/09/29/google-apple-safari-search-engine/ http://fortune.com/2018/09/29/google-apple-safari-search-eng...
Looking at the increase in Apple's services revenue ($8.5B, Q1 '18 -> $10.8B Q1 '19 -> $2.3B YoY increase) vs. increase in service revenue due to Google sharing ($9B - $3B = $6B / 4 quarters = $1.5B), we get that approximately 65% of Apple's incremental services revenue is due to increased revenue sharing from Google. IMO, this doesn't seem like a long term sustainable source of revenue growth for Apple.
- ryanwaggoner 8y agoActually, that's just some analyst's guesstimate. The actual numbers have not been released since 2014.
- londons_explore 8y agoThe actual numbers are in Google's quarterly reports as "traffic acquisition costs". That figure bundles in the costs paid to Dell and hp to have Google the default search engine on those machines, but I think we can be pretty sure that is dwarfed by the amount paid to Apple...
- ariwilson 8y agoBased on Q1-Q3 earnings, TAC to all distribution partners in Google's reports is approximately $13B in 2018. This is approximate since Q4 results are not released yet. Comparatively, TAC in 2017 was $9B.