Why Google pay Apple to use Chrome on iPhone so badly?

Google is going to great lengths to get iPhone users to switch from Safari to its own Chrome browser, as revealed by the ongoing antitrust lawsuit against the tech giant. Direct quotes from the trial and sources show just how much revenue Apple is siphoning from Google through its position as the iPhone's default search engine.

The Steep Price Google Pays to Be Default on iPhones

During testimony this week, a Google attorney disclosed that the company pays Apple an astounding 36% of the search revenue generated when iPhone users go through Safari. As reported by Business Insider, this is "included in about $18 billion a year it pays Apple just to be Apple's default search engine."

The slip of the 36% figure visibly shocked Google's legal team, as it was likely not meant to be stated publicly. It offers a rare glimpse into the enormous profits Apple earns from Google simply being the preset search option on iPhones and other Apple devices.

While $18 billion is a fraction of Apple's nearly $400 billion in annual revenue, it represents a huge chunk of the over $280 billion that Google earns from search ads each year.

Also Read:- Why Google Pays Apple Billions of Dollars Every Year

Billions Lost from iPhone Users on Safari

Even though Safari only makes up 27% of mobile browser market share, that still amounts to a sizable number of iPhone users that Google is missing out on. With each iPhone user on Safari costing Google 36% of search revenue, migrating them to Chrome could be worth hundreds of dollars annually.

Getting more iPhone owners to choose Chrome would allow Google to bypass Apple's steep 36% cut and keep more of the profits for itself. For a company bringing in nearly $280 billion annually from search, every percentage point counts.

So the next time you see an ad for Chrome on your iPhone, know that Google has a major financial incentive to get you off Safari. The company isn't just touting the benefits of its browser - it's trying desperately to chip away at the billions Apple earns as the preset search engine.