Google paid Apple nearly $9.5 bn in 2018, estimates Goldman Sachs

San Francisc: To remain the default search engine on iOS devices, Google paid Apple nearly $9.5 bn in traffic acquisition costs (TAC) in 2018, thereby contributing massively to the iPhone maker’s services revenue, estimates Goldman Sachs.

Apple is focusing on services revenue amid slowing iPhone sales in emerging markets like China.

According to a report in CNBC on Tuesday, what Google paid Apple in TAC represented a third of Apple’s profit in the segment.

Goldman Sachs warned that while the fees paid by Google will continue to make up a large portion of Apple’s services revenue into 2019, the rate of growth will be slower.