Apple to ditch Google in favor of developing its own search engine

Apple to ditch Google in favor of developing its own search engine

However, the arrangement isn’t likely to survive in a world of rising antitrust scrutiny. That’s why Apple should proactively get ahead of any risk and make its own offering. The move would help appease regulators but also be a smart one for its main business. The numbers in the Google search deal are becoming too egregious. Last week, Bernstein raised eyebrows when it updated its latest projections on the accord. The firm estimated Apple will receive $15 billion from Google this year, increasing to as much as $20 billion next year.

Apple may be the only firm with the scale and resources to compete with Google. So there’s even more motivation for Apple to dominate Google, so what’s the holdup? Google continues to dominate the search engine sector, but this might change in the future. Photographer: Reuters Google continues to dominate the search engine sector, but this might change in the future. Photographer: Reuters It’s time for Apple Inc. to kick its easy money habit and focus on a greater prize: building its own search engine. For years, the smartphone manufacturer reaped financial benefits from a lucrative partnership in which Alphabet Inc.’s Google paid Apple billions of dollars to be the default search engine choice on iOS devices.

In fact, the distribution payments were a centerpiece of last October’s Department of Justice antitrust lawsuit against Google, for good reason. It makes it nearly impossible for a smaller startup to get a foothold in the market where Google has a monopoly-type hold. According to StatCounter, the internet giant has 92% of the global search engine industry. And with the payouts only inclined to soar further, I don’t see how this blatantly anti-competitive practice can stand in court. But the end of the partnership may turn out to be a blessing. Search is one of the few large technology markets that can move the needle for a multi trillion-dollar company like Apple.

Bernstein says Google generates more than $50 billion in revenue from iOS customers. So, why not take out the middleman and get a larger part of the pie? With an active iPhone user base of more than 1 billion and a robust balance sheet, Apple is perhaps the only company that has the scale and resources to be a viable rival to Google. The market could certainly use more players. While Amazon.com Inc. has made progress in monetising product search results, its efforts remain primarily focused on online shopping ads. The general search industry hasn’t seen much competition or innovation over the past decade. According to StatCounter, the internet giant has 92% of the global search engine industry. And with the payouts only inclined to soar further, I don’t see how this blatantly anti-competitive practice can stand in court.

Here’s another positive: Apple would become more intellectually honest about its pro-privacy credentials. Chief Executive Officer Tim Cook has repeatedly blasted digital advertisers for their lack of transparency over their exploitative practices — including tracking activity behaviour and acquiring vast troves of personal users’ data — all the while extolling the virtues about how his company puts privacy first. That is hypocritical when Apple takes money from Google, which is known for some of the same things Cook has criticised. By creating a search engine with better privacy protections, Apple can truly live up to its principles.

Most importantly, making a huge investment in search capabilities can make Apple’s main products more attractive. Unlike its car initiative, the engineering required is similar to the mobile software and cloud services work Apple already does. Because it is an adjacent area, any expertise acquired can enhance its technology capabilities elsewhere — from artificial intelligence to voice recognition — making owning an iPhone or iPad a better experience. Sure, it’s not going to be easy to beat Google. But with a dual upside of possibly adding tens of billions in revenue and the prospect of improving the stickiness of its core products, Apple should certainly give it a try. While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

The News Highlights

  • Apple to ditch Google in favor of developing its own search engine
  • Check the latest update on Security news
  • .

Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
Trade is an important component of the food response, but the world faces additional challenges
Trade is an important component of the food response, but the world faces additional challenges
”One thing that is common to all these crises is that no single country can solve any one of them,” she added. The World Trade Organization (WTO) chief said ...
There are currently no plans for a iPhone 14 Maximum Delay, But Apple Has Enough to Worry About
There are currently no plans for a iPhone 14 Maximum Delay, But Apple Has Enough to Worry About
Any hitch in the development process can at this point result in a belated commercial debut, but while Ming-Chi Kuo is today confirming a recent report of ...
Epic Games Is Suing Apple Over App Store Antitrust Violations
Epic Games Is Suing Apple Over App Store Antitrust Violations
“The operating system Apple uses in its Mac computers (macOS) does not include the challenged restraints found in the iPhone operating system (iOS), and ...
In March quarter, Jet Airways lost Rs 234 crore
In March quarter, Jet Airways lost Rs 234 crore
Currently, the airline is being managed by a monitoring committee. ”… the monitoring committee is not in a position to provide the consolidated financial ...
Details about Nada's design Phone 1 were released
Details about Nada’s design Phone 1 were released
First, as expected, the Phone 1 will have a transparent design. This means the phone will aesthetically match Nothing’s only other hardware product, the ...
According to the head of the International Zinc Association, zinc-air batteries are a realistic and cost-effective way to store renewable energy.
According to the head of the International Zinc Association, zinc-air batteries are a realistic and cost-effective way to store renewable energy.
Observing that almost all companies across the globe are looking to renewable energy solutions for their sustainability goals, Misra on Thursday said one of ...
Elon Musk is not the only one Twitter Problem, according to a U.S. government lawsuit
Elon Musk is not the only one Twitter Problem, according to a U.S. government lawsuit
Why else did the US Government file a lawsuit against Twitter? The lawsuit specifically centers around a timeframe extending from May of 2013 through ...
What is Android Auto?  Users claim it is more like Lagdroid Auto
What is Android Auto? Users claim it is more like Lagdroid Auto
Galaxy S22 is one of the most expensive Android devices currently on the market, and as a flagship, its price in the top-of-the-range configuration gets ...
Cummins India profit was unchanged for the March quarter at Rs 189 crore
Cummins India profit was unchanged for the March quarter at Rs 189 crore
Sales from operations stood at Rs 1,468.5 crore in Q4 FY22, which was 8 per cent up from Rs 1,358.1 crore in the same quarter of the preceding fiscal. The ...
Alibaba beats revenue forecasts on demand for niche shopping services in China
Alibaba beats revenue forecasts on demand for niche shopping services in China
At the core commerce unit, its largest, revenue rose 8% to 140.33 billion yuan. Alibaba Group Holding Ltd on Thursday beat assumptions for final quarter ...
Show next
We will be happy to hear your thoughts

Leave a reply

Compsmag - Latest News In Tech and Business
Logo