Google is still dependent on Apple for growth

#Google is still dependent on #Apple for growth - that sound off, right? Apparently, no. Google paid Apple $12Bn to achieve search growth (as per few reports). WHY BUT?

Google has a solid search engine and market share of that is over 90% but that still doesn't solve a problem. You need a browser for that.

Google created that as well - Chrome. Chrome was instrumental in what they are today. Chrome still have 65-70% market share. AWESOME!!!

Now, to access browser one needs a screen (computer, phone or tablet). That's where then the entire game is being played.

Apple still has a 50% market share in phone category in US. And Google derives 50% revenues from US and search revenue is 70% of total revenue. Growth is coming from mobile search and hence the $12Bn to Apple.

This $12Bn to Apple is to make Google Search a default Search Engine for Safari.

CRAZY how the dynamics play!!!

As per 10K - Google spends a total of $14Bn to acquire traffic - called as TAC (traffic acquisition cost) through Google Properties and here it pays to Apple close to 85% to acquire traffic.

This shows how much Apple is important for them and how CHROME and YouTube will be driving future growth strategy.

#google #apple