Why Google Pays Apple $18 Billion Every Year




Google and Apple hold one of the biggest rivalries in the tech industry, competing on various products and services, such as operating systems, web browsers, maps, digital assistants, and mobile phones. To the public, these two tech giants appear to be enemies. Behind the scenes, however, they are more of frenemies, with a secret partnership that benefits them both. So why exactly does Google pay Apple an eye-watering $18 billion annually, indirectly funding the competition? These are ads shown when people make Internet search queries via Google’s search engine. Advertisers pay Google to show their products and services to people searching the Internet.

That’s why when you search for ‘best hotels in the UK’ on Google, you are bombarded with advertisements at the top of your search results. Hotels in the UK, for example, pay Google to show their room listings to potential customers searching the Internet. The amount advertisers pay, however, depends on who is being shown the ad. Advertisers consider various factors such as the person’s current location, previous spending history, and the brand of the device the customer uses, to determine how much it pays to show an ad to that person.