Top executive reveals why Apple won't build Google-like search engine
Apple has no plans to build its own search engine, according to Eddy Cue, the company's Senior Vice President of Services. His remarks come at a time when the $20 billion deal between Apple and Google, which makes the latter the default search engine on iPhone, is under scrutiny. The US Department of Justice (DOJ) is investigating the deal in a case against Google's search dominance.
Apple refutes assumptions of entering search engine market
In a recent court filing spotted by Reuters, Cue clarified that the court's assumption that Apple could develop its own search engine or enter the Search Text Ad market to challenge Google's dominance is wrong. He said "Apple is focused on other growth areas." He further explained that creating a search engine would require significant capital investment and employee resources, as it could cost billions of dollars and take many years.
AI advancements pose economic risks for new search engines
Cue also emphasized the rapid evolution of search, thanks to recent and ongoing developments in artificial intelligence (AI). He said that these advancements make it economically risky to spend the huge resources that would be required to build a search engine. Cue specifically cited AI-based search engines like Perplexity and OpenAI's ChatGPT Search as examples of this trend.
Apple lacks infrastructure for search advertising business
The third reason Cue gave for Apple not entering the search engine market is that it doesn't have a platform to sell targeted advertising, which he said isn't a core business of Apple. He stressed that "Apple does not have the volume of specialized professionals and significant operational infrastructure needed to build and run a successful search advertising business."
Privacy commitments and search advertising business
While acknowledging Apple's niche advertising on platforms like the App Store, Cue differentiated it from search advertising, saying the latter is outside of Apple's core expertise. He also noted that building a search advertising business would have to be balanced against Apple's longstanding privacy commitments. This indicates that any potential move into this sector would have to be in line with the company's existing policies and values.
