What Will Apple Lose If Their Deal With Google Breaks Up?

What Will Apple Lose If Their Deal With Google Breaks Up

Introduction:

In our previous article, we talked about how much Google will suffer if their deal with Apple breaks up due to the lawsuit. However, recent analysis and statements released by officials have told us that Apple will also suffer a great loss if this Billion dollar deal with Google breaks up.


Toni Sacconaghi, an analyst for Bernstein said that “there is a risk if you play it out, that there actually could be a greater financial loss to Apple than there is for Google”


Analsyts have predicted that Apple’s revenue could decrease more 20% if the lawsuit against Google manages to break its important deal.


The lawsuits describe this deal as code red in terms of laws. They also said that Google has used illegal ways of boosting its traffic from Apple products that lead to enormous profit.

What will Apple lose?

It is quite clear that not only Google but Apple will also suffer an economic loss from this lawsuit. It is estimated that Google’s payment to Apple is nearly $8 billion to $12 billion per year. If this deal breaks up, this money won’t be paid to Apple. These earnings make up 20% of Apple’s net income. It’s quite a havoc in between both of these companies.

What is Google saying in its defense?

Google didn’t provide a logical argument in its defense. Google’s senior VP, Kent Walker said that it is easy to change the browser settings in Apple’s devices if the user wants to and all of these agreements are no different than the agreements which previous company used when distributing their software”.

Apple investors have also been asked questions regarding their iPhone 12’s sales all over the world due to pandemic situations. If something happens to this deal, both company’s economy will be at risk.

No one can say how this lawsuit will proceed. We can’t also say, how much danger Google and Apple are in right now. But it is safe to say that the Department of Justice is taking action against all the illegal things and agreements done by big tech companies. We have to wait for a long 16 month time period for the final verdict.

Conclusion:

All these big firms are playing with their customers for their own benefits and earnings. They have gradually locked us into an ecosphere of business from, which we can’t come out that easily.

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