Currently, Apple and Google have a highly profitable partnership that brings in around $8 billion annually for Apple. This partnership involves Apple directing its massive userbase to Google Search, and in return, Apple receives a commission from Google’s search ad revenue. While Apple benefits greatly from this arrangement, Google also relies on Apple to promote its search engine and maintain its dominant position in the market.
Apple’s policy has always been to “own the core technologies underlying its products,” as Bloomberg describes it. By leveraging its knowledge and close relationship with Google’s search engine, Apple could gain significant search power and retain a larger share of ad revenue. It wouldn’t need to match Google’s advertising and search slot capabilities. Simply creating its own in-house search engine would be enough to boost revenue and maintain control.
For several years now, Apple has been developing its own search engine. Led by John Giannandrea, a former Google executive now in charge of machine learning and AI at Apple, the search engine team has been working on a project codenamed ‘Pegasus.’ This search engine is primarily designed for Apple’s own apps and is expected to expand to more of their platforms, including the App Store.
Apple’s search capabilities already include Spotlight, an engine that allows users to find features and tools across their devices. Recently, Apple added web search support to Spotlight, enabling users to find answers to their queries by directing them to various websites. In the past, Apple’s web search has been powered by Microsoft Bing and Google, but the company is now looking to enhance its search features with generative AI tools.
Apple already utilizes several technologies to improve its search tools, such as Applebot. This technology scours the internet and indexes websites, providing more accurate search results and expanding the number of websites accessible through Siri and Spotlight. Additionally, Apple has an advertising technology team, bringing it closer to Google’s capabilities if it ever decides to create its own full-fledged search engine.
Despite its ongoing search engine development, Apple seems to have no intention of creating its own search engines. According to Eddy Cue, Apple’s senior vice president of services, the partnership with Google is the most advantageous option for Apple. Apple tends to maintain partnerships that serve its best interests, similar to how it partnered with Intel for chip manufacturing until it began designing its own silicon in-house. Taking on the search engine behemoth is not a priority for Apple at the moment.
In conclusion, while Apple has been working on its search engine project for years and possesses the necessary technologies, its current partnership with Google proves to be the most beneficial arrangement. Apple’s focus remains on leveraging its partnership to maximize revenue and maintain control over its products rather than venturing into the search engine market.
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