News broke on the interwebs that Google might have been paying Apple up to $3 billion inorder to remain the default search engine on Apple’s iOS devices.
Google paid just $1 billion about 3 years ago… so, Apple might even demand a bigger paycheck next year.
What can we learn?
Let us zoom in…
See, Google is not a fool for coughing out $3 billion to secure the partnership.
Analysts estimates that iOS users generate about 50% of Google’s mobile search revenue. Therefore, it is only logical for Google to defend such a profitable field.
If a corporate body is paying so much more money to remain the default option on another man’s platform, know that it is because the profits make it worth it. Nobody is getting a free meal anywhere.
On the flip side, I see the benefits to owning a platform.
I was discussing with some friends a few weeks back and someone raised a point that if not for Android’s dominance, Google would have been sidelined or rigged out of the game by now.
By owning a slice of the mobile landscape, Google is able to also dictate the conversation.
Beyond just building apps, websites and all the rest…
We also need to think in terms of platforms.
Maybe someday, someone will also pay us $3 billion inorder to gain access to our users.
Or what do you think?
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