Sundar Pichai on Google Search Revenue Sharing: Recently, Google has been accused of favoring Apple over Samsung, sparking a court investigation. The claim suggests that Google pays more to Apple, creating concerns about fairness. Google's CEO, Sundar Pichai, responded by admitting that 36 percent of the search revenue goes to Apple. He defended this, stating it accurately represents the value of services provided. Pichai used an analogy, comparing the situation to distinguishing between apples and oranges.
Apples and Oranges Analogy
Pichai stated that treating Samsung and Apple equally in revenue sharing is like expecting apples and oranges to have the same price when bought in the market. He emphasised the unique contributions of Samsung and Apple, justifying the different payment structures.
Revenue Sharing Dynamics
Reportedly, both Samsung and Apple incorporate Google's search services into their smartphones, significantly boosting Google's search traffic and revenue. In return, Google shares some of its earnings with both companies. Pichai highlighted that Google allocates $10 billion more to Apple which indicates different levels of importance for each partner.
The court debate reveals the complex dynamics of revenue sharing in the tech industry which raises questions about Google's fairness in dealing with major smartphone manufacturers.
Importance of Google Searches
Having Google searches featured on Samsung and Apple devices enhances user experience for them. This mutually benefits Google by increasing search traffic and overall revenue. The revenue-sharing model reflects the value Google places on its partnerships with these tech giants.
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