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Goldman Sachs: more than 20% of Apple services revenues come from Google

Analysts at Goldman Sachs estimate more than 20 percent of Apple’s growing services revenue comes from Google, according to analyst at Goldman Sachs. The company’s services income is gleaned from, among other things, iTunes, iCloud, Apple Music, Apple Pay, AppleCare and the various App Stores.

Howeveer, Goldman Sachs estimates Google paid Apple nearly $9.5 billion in traffic acquisition costs (TAC) during calendar year 2018. Google pays Apple to provide the default engine for the latter’s various devices. Services fees will continue to make up a large portion of Apple’s services revenue into 2019, the firm said, but will grow at slower rates.



However, the share of the segment that comes from Google is decelerating, and Apple could need to make up the difference with a ‘Prime’ bundle, Goldman Sachs said in a note obtained by CNBC.

“Apple will need to add mid to high single digits growth back to Services revenues through successful launch of the ‘Apple Prime’ bundle including original video that we expect to be rolled out this Spring/Summer,” the firm said.

Dennis Sellers
the authorDennis Sellers
Dennis Sellers is the editor/publisher of Apple World Today. He’s been an “Apple journalist” since 1995 (starting with the first big Apple news site, MacCentral). He loves to read, run, play sports, and watch movies.