Google, or maybe it would be more correct to speak directly of Alphabet, enter every year a good amount in advertising. The ads are arguably the most lucrative business of a company that must also invest an important part of its budget to make the machinery work . This investment is aimed at setting your browser as default but also promoting the use of your applications.
As it was revealed a few days ago, the price to be paid by Google for its browser to be fixed by default in the Safari of iPhones and Macs had multiplied by three in just a few years. Now, to that 3,000 million would have to add another known information. No manufacturer pre-installs Google Apps for free.
7.2 billion dollars to promote their apps
According to Bloomberg, Google would invest up to $ 19 billion a year in a concept called "Traffic Acquisition", a concept that would cover $ 3 billion to Apple and also the cost of prefixing Google in traditional browsers, and also in the park of Android phones and tablets.
The breakdown goes further and a specific figure is mentioned. $ 7,200 million would be paid by Google to various manufacturers for to include Google Apps pre-installed on their phones something that would completely change the concept that had until now of these and that placed them as "key" for the certification of devices. To receive Android officially instead of having to look for life on its own.
Google pays 7.2 billion dollars for pre-installing Google Apps, and 3 billion for Apple as its default browser. Figures that have not stopped growing.
These 7,200 million seem to be a pretty high figure for putting Google Apps on the various Android devices in the market, but they are even more impressive compared to what Google paid in 2012 for the same concept. The figure would have multiplied by three in just five years. From $ 2.4 billion to $ 7.2 billion.
It seems logical, however, since the Android domain is now much larger . We speak of an operating system with a quota above 80% since it is not known how long and that already has only Apple as the main competitor, since in Microsoft have definitely thrown the towel and the rest of the operating system has just taken off
As the costs that Google faces to maintain its revenues have not stopped growing in recent years, it is logical to think that they continue to do so. Apparently, because the latest contract signed with Apple includes a future increase that would leave the current $ 3 billion obsolete. We assume that all this is still compensating, of course. Alphabet does not stop giving profits and is already close to reaching the Apple itself that pays .
Via | Bloomberg
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