Apple Inc. has been contemplating the possibility of developing its own search engine to rival Google for quite some time now. Recognizing that search is a fundamental tool used by countless users on smartphones, tablets, and computers, Apple has always prioritized owning the core technologies that underpin its products. Moreover, there is a significant amount of revenue at stake. Currently, Apple receives a share from Google's search ad revenue, generating approximately $8 billion annually. If Apple were to successfully roll out its own search engine, it could potentially create a revenue stream on par with the Apple Watch, assuming it can sell advertising and search slots at rates comparable to Google.
While launching a full-fledged search engine may be a long shot, Apple's internal search technology has shown progress. The company has been honing its search capabilities for years, leading to improved non-web search features and strengthening its bargaining position in negotiations with Google. Apple's search technology, codenamed "Pegasus," has been developed by a large team under the supervision of John Giannandrea, a former Google executive who now oversees machine learning and AI at Apple. The technology has already been implemented in certain Apple apps, such as Spotlight, Siri, and various other services.
Apple has also been investing in enhancing its search infrastructure. It has its own web crawler called Applebot, similar to those utilized by Google and Microsoft, which indexes websites for future search results. In addition, Apple has an advertising technology team that handles search ad functions in the App Store, Apple News, and other platforms. These existing assets, along with the potential opening provided by AI and machine learning, position Apple to explore the possibilities of a comprehensive search engine.
While Apple's current search capabilities may pale in comparison to Google's, the integration of its search features into the iOS and macOS experience, coupled with its generative AI tools, could propel Apple's efforts forward. Apple's machine learning team has been hiring new engineers to work specifically on search technologies, and there have been strategic acquisitions, such as Laserlike, an AI-based search engine founded by former Google employees.
Interestingly, Microsoft approached Apple about a potential collaboration to make Bing the default search engine on Apple devices. However, Apple's senior vice president of services, Eddy Cue, decided against the deal, claiming that Google provided the best search offering. While this may be true, it is likely also influenced by the desire to protect Google from potential antitrust actions that could disrupt the lucrative agreement between the two companies.
In the long run, an Apple search engine could be a significant addition to the company's ecosystem. With its track record of developing and enhancing core technologies, Apple could ultimately close the gap and offer users a more integrated and private search experience. While the launch of a full-fledged search engine may not be imminent, Apple's ongoing efforts in search technology indicate that it may be closer than many anticipate.