Apple has decided not to create its own search engine, and there are several reasons for this decision. Eddy Cue, a Senior Vice President at Apple, explained that developing a search engine would be extremely costly. Cue mentioned that such a project would require “billions of dollars” and take “many years” to complete. Additionally, Apple would need to divert employees from other important growth areas, which the company wants to focus on.
The search engine business is considered risky, especially with the rapid advancements in artificial intelligence (AI). AI is transforming the landscape, making it unpredictable and economically uncertain. This unpredictability is one reason why Apple is hesitant to enter the search engine market.
Another significant factor is that Apple would need to sell targeted advertising for the search engine to be profitable. However, this approach conflicts with Apple’s strong privacy policies. Apple has always prioritized user privacy, and targeted advertising would go against these principles.
Moreover, Apple currently receives substantial payments from Google to keep Google as the default search engine in its Safari browser. In 2022, Google reportedly paid Apple around $22 billion for this arrangement. This lucrative deal is a strong incentive for Apple to maintain the status quo rather than develop its own search engine.
The context for Cue’s explanation is a legal case involving Google. The US Department of Justice has filed an antitrust lawsuit against Google, and a federal court has already deemed the deal between Apple and Google illegal. Cue wants Apple representatives to testify in this case, stating that only Apple can determine the best future partnerships for its users.
There were previous discussions within Apple about potentially moving away from Google. In 2019 and again a year later, Apple considered making DuckDuckGo the default search engine. However, these plans did not materialize, partly because of the ongoing legal scrutiny on Google’s market dominance.
Speculation about Apple developing its own search engine increased when Google came under the US Department of Justice’s scrutiny for its monopoly status. However, Apple’s decision to stick with Google suggests that the company finds it more advantageous to continue their existing partnership.
In conclusion, several factors contribute to Apple’s decision not to pursue its search engine. The high costs, economic risks due to AI, and the conflict with privacy policies make it an unattractive venture. Additionally, the financial benefits from its deal with Google provide a strong incentive to maintain the current arrangement. As a result, Apple remains focused on its core areas and other growth opportunities, leaving the search engine market to established players like Google.