Apple Search Engine A Blow For Google
Apple Buying Own Search Engine: Bernstein analyst Toni Sacconaghi has come up with a possible theory that could cost Google $ -billion of revenue. As per him, Google pays Apple $7-8 billion to keep Google as the default search engine in its web browser Safari. Even though these numbers have not been confirmed by any of the two parties, the figures have come up from the mouths of many experts. Google earns revenue of at least $25 billion through ads from Apple devices. It might cost Google approximately $15 billion if Apple decided to buy its own search engine.
Alternative Search Engines For Apple
One of the main reasons why Google pays a large sum to Apple is because of its competitors. The biggest competitors of Google in the search market are Bing by Microsoft and Yahoo search. Google pays this large sum to ensure that these two players remain out of the game. They fear Microsoft may offer a better deal and they could lose out on profits. Google is undoubtedly the best search engine and could call off the deal with Apple if they have the confidence that people will go to Google.com from Safari after exiting their default search engine. However, this can be a big gamble with high stakes.
Expert’s View On Apple Buying Its Own Search Engine
Sacconaghi has provided a clearer view of this matter. He said,
“Yes, Google is clearly the dominant force in search today. However, we suspect the company’s fear of ‘rocking the boat’—which could compromise $15 billion in profits it captures today from iOS—may ultimately limit its freedom of action with Apple. Conversely, Apple may be in a stronger position than at first glance, given it controls the keys to the kingdom on who can monetize iOS search. However, it remains uncomfortably dependent on Bing to act as a counterweight to Google—hence our suggestion that Apple acquires its own search engine.”
Which Search Engine Can Apple Buy?
The words of Sacconaghi pave the way to the question of which search engine apple should buy in order to take Google. The best way forward in this plan would be to buy the fourth-best search engine, which is DuckDuckGo. It could acquire it for less than $1 billion. However, Sacconaghi believes it would have a difficult time getting the revenue of $7-8 billion. It is still to be seen if Apple takes any such action in future.