Goldman Sachs On Google And Apple's Relationship, 'Apple Prime' Coming Soon

Although Google and Apple stand head to head in the tech world, the former still pays a massive amount of money to the later to keep its services on top in all of Apple’s devices. While this makes up for one-fifth of total services revenue for Apple, they are eyeing for more as new reports now claim that “Apple Prime” is just around the corner.

With so many speculations roaming around the business affair of Google and Apple, Goldman Sachs has their own estimates now for the stakeholders of Apple. According to their statement, Google pays around $9 - $10 Billion every year to Apple with the purpose of being the default search engine on all iOS devices.

Breaking it down further, they have also indicated that this huge chunk of money brings one-fifth of Apple’s total Services revenue - which the company aims to rely on as a long-term strategy now. However, the fees will continue to bring the save massive impact in 2019 as well and the rate will also grow at slower rates.

This didn’t stop here as the report of Goldman Sachs also mentioned about Apple’s own media subscription service with the name of Apple Prime. A successful launch of it in Spring/Summer can bring the company back to $1 Trillion valuation.
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Although there is no confirmation about what Apple will actually offer through its media subscription service, price will also be a very critical factor as the competition in streaming industry is already pretty tight.

We have already seen Apple Music being a popular contender for the music streaming space. On the other hand, they are also entering into news and magazine culture, expectedly by next month. If all goes well with the Apple Prime, this would indeed boost up their ecosystem more.

Google reportedly paying Apple $9 - 10 billion to remain default search engine on iOS devices
Photo: NurPhoto | Getty Images

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