Why the iPhone is the most important device for Google

Google It has Android, Pixels, and countless smart home-focused products. However, Your most important device is your iPhone, believe it or not. To the point where they are willing to pay exorbitant amounts of money every year to make their search engine the default Safari browser.

In the US, the antitrust case against Google has been attracting a lot of attention for several weeks. And the North American Department of Justice decided to focus its efforts on understanding Why the Apple Alliance Is So Important to Mountain View Residentsand why other companies will do whatever it takes to be in this position.

Google has been Safari’s default search engine since it was introduced in 2003 as an alternative. in the house to Internet Explorer for Mac. And this trend continued with the advent of software on mobile platforms, first on the iPhone and then on the iPad.

Given the popularity of the iPhone, which is by far the most successful product in Apple’s current catalogue, Maintaining the default search engine status has become crucial for Google. In the US, it is believed that the residents of Mountain View are paying their neighbors in Cupertino about $10 billion annually to achieve this. However, Register reports that, according to a financial analyst, the agreement would actually be worth $18,000 to $20,000 million per year.

Thus, the contract for Google to be the default search engine in Safari is stipulated to represent between 14 and 16 percent of Apple’s annual operating profits.

iPhone and its special importance for Google

What’s interesting is that Google’s need to remain the default Safari search engine on iPhones and other Apple devices is not necessarily tied to achieving economic goals. If not by victory over competitors.

Own Satya Nadella, Microsoft’s CEO, made his position on this issue clear when testifying in the antitrust trial against Google. He assured that his company tried to become Apple’s default search engine, but that story did not end well. Moreover, he stated that they are ready to lose up to 15 billion dollars a year if they achieve this. Plus hide the Bing logo so it doesn’t appear when you search on your iPhone, iPad, or Mac.

Why would a corporation of Redmond’s caliber put themselves through this? Nadella made it clear: “They are essentially kingmakers.”, he said of Apple. Moreover, he warned that the carrot that all search engines are chasing in this race is to impose themselves as a predetermined option. Going by default is “the only thing that matters in terms of changing user behavior,” the businessman warned.

Microsoft, like Google and other companies in the sector, recognizes the importance of being the default search engine on any platform. After all, the majority users They tend to leave the configuration of their devices or applications as they came from the factory.. And because the iPhone is the most popular mobile phone in the United States, with more than 50 percent of the market, it provides quick access to hundreds of millions of users.

Strategy to contain Chrome on iOS?

Apple is now the best-priced company in the world, with a valuation exceeding $2.8 trillion. Therefore, it is logical to think that you have enough resources to develop your own search engine. In fact, the company already does this and has even implemented it in some of its features such as Siri and Spotlight.

However, Cupertino residents are realistic and know that, at least for now, they are not ready to compete head-to-head with Google. This is probably one of the most valuable lessons learned from the Apple Maps fiasco of 2012.

It’s also a game of balance though. Allowing Google to become the default search engine on the iPhone will not only bring in a lot of revenue for Apple, but it will also keep Mountain View under control.

After all, if Tim Cook decides to switch to Bing or DuckDuckGo, he risks retaliation from Google. For example, to compete more directly with Safari on iOS using Chrome. And this is probably a battle that Cupertino residents are not prepared to fight.