Introduction:
In our previous article, we talked about how much Google will suffer if the Apple deal is broken due to the lawsuit. However, recent reviews and statements released by employees tell us that Apple will also suffer a huge loss if this billion dollar deal with Google ends.
Toni Sacconaghi, an analyst at Bernstein, said that “there’s a risk, if you throw it away, that there may actually be a greater financial loss for Apple than for Google.”
Analsyts predicted that Apple’s revenue could fall another 20% if the lawsuit against Google succeeds in breaking its important business.
The lawsuits describe this agreement as code red in terms of the law. They also said that Google used illegal ways to increase their Apple product traffic which leads to huge profits.
What will Apple lose?
It is quite clear that not only Google but Apple will also suffer economic loss from this process. Google’s payment to Apple is estimated to be around $8 billion to $12 billion a year. If the deal falls apart, that money will not be paid to Apple. Those earnings represent 20% of Apple’s net income. It’s a big mess between these two companies.
What is Google saying in its defense?
Google has not provided a logical argument in its defense. Google Senior Vice President Kent Walker said that it is easy to change browser settings on Apple devices if the user so desires, and all these agreements are no different from the agreements the previous company used when distributing its software.”
Apple investors were also asked about iPhone 12 sales worldwide due to pandemic situations. If something happens to this deal, the economy of both companies will be at risk.
No one can say how this process will proceed. We also can’t say how much danger Google and Apple are now. But it’s safe to say that the Department of Justice is taking action against all illegal things and deals made by big tech companies. We have to wait for a long period of 16 months for the final verdict.
Conclusion:
All these big companies are playing games with their customers for their own benefits and gains. They’ve gradually locked us into a business ecosphere that we can’t get out of so easily.
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