Much like Microsoft Edge, no one used Safari unless they are using it to download a new default browser. Shares of Alphabet, Google’s parent company, dropped after news came out, during testimony, that Apple was looking to “retooling” Safari, exploring AI search engines.
Apple executive Eddy Cue disclosed the AI explorations Wednesday during testimony in federal court, Bloomberg reported. The news agency quoted Cue as saying Apple was “actively looking at” retooling Safari to focus on AI search.
However, this news, I believe, was premature. Yes, Google is in a antitrust lawsuit with the federal government so the optics might not look good. But, the odds that Apple would have something that could compete with Google is a bit premature. Yet, the antitrust lawsuit could result in Google having to give up Chrome and weaken their search position.
It is important to note that Google’s default search engine within the Apple ecosystem is pretty strong. No matter which browser I use, personally, Google is always my default search engine. Google does pay Apple north of $20 billion a year in revenue sharing. That is a lot of money for Apple to throwaway to march out on their own in this questionable internet landscape.
Alphabet shares were 9.3% lower in midday trading, wiping more than $80 billion off the company’s market capitalization. That was such a huge drop that it broaden the decline of the Nasdaq overall on Wednesday.
“The Google search deal is hugely lucrative for both sides, so Apple is likely weighing options if that arrangement goes away”, Axios chief tech correspondent Ina Fried writes.
Again, it is important to note that Googles only competition – in name only – is Microsoft. However, if Apple gets into the game, this could increase the competition since Apple mobile devices still hold a large market share. At this moment, no other AI-powered search engine has the revenue stream that Google has. So the sell of is premature in my opinion.