Apple making progress in its effort to replace Google search
By MYBRANDBOOK
According to reports, Apple has been developing its own search technology, which could force Google off from its products. Apple has experimented with search in programmes like Spotlight even though it is still in its infancy. Given that billions of Apple devices presently rely on Google's search technology, if this strategy is successful, it might have a huge influence on Google's earnings.
The search feature is the most used tools on smartphones, tablets and computers — and Apple’s modus operandi has long been to own the core technologies underlying its products. At present, Apple receives a cut from Google's search ad revenue, a commission that has brought in roughly $8 billion annually in recent years.
If Apple comes up with its own search engine, it could potentially create a revenue stream about the size of the Apple Watch, assuming it can sell advertising and search slots at the same price as Google.
Google may be dominant in search, but the company still needs Apple and its billions of users. As long as their agreement is in place, Apple has an incentive to steer its customers toward Google. The more Apple promotes Google search, the more money Apple makes.
According to a person involved in the deal, aligning the incentives of Apple and Google was a big part of the agreement. Apple could send all its customers to the DuckDuckGo search engine if it wanted to, but that would just hurt Apple.
But if the internal search technology of the iPhone maker becomes successful then Apple could theoretically offer customers a more integrated and private solution compared with Google. The public has already gotten a glimpse of what this could look like. The company built its own search engines for services like the App Store, Maps, Apple TV and News.
John Giannandrea, a former Google executive who now oversees machine learning and AI at Apple, has a giant search team under him. Over the past few years, his group developed a next-generation search engine for Apple’s apps codenamed “Pegasus.” That technology, which more accurately surfaces results, is already available in some Apple apps, but will soon be coming to more, including the App Store itself.
But the best evidence of Apple’s search efforts can be seen in Spotlight, which helps users find things across their devices. A couple of iOS and macOS versions ago, Apple started adding web search results to this tool, pointing users directly to sites that might answer their questions. During different points in time, those results were powered by either Microsoft Corp.’s Bing or Alphabet Inc.’s Google. Siri also uses that technology to offer up web results.
Giannandrea’s team is now looking to more deeply integrate Apple’s search features into the iOS and macOS experience — and potentially bolster the technology with its new generative AI tools.
Apple also has its own advertising technology team, which will be helpful if its search ambitions grow. That group runs the search ad functions in the App Store, delivers ads to Apple News and the stocks and weather apps, and negotiates the advertising deals for streaming sports. That group already has many of the skills and salespeople needed to become the start of an advertising group for web search.
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