According to a recent report, Apple has the necessary components to develop its own search engine for its devices if it chooses to move away from relying on Google. For over a decade, Google has been the default search engine for the iPhone, with reports suggesting that Google pays Apple between $8 billion and $12 billion annually as part of their agreement. However, this deal is complicated by allegations from the US government that Google maintains a monopoly in online search and ad sales.
In his Power On newsletter, Bloomberg’s Mark Gurman argues that Apple has the potential to surpass the revenue generated from its current deal with Google if it were to create its own search engine. Gurman acknowledges that this is a “long shot” but highlights that Apple has already integrated search engines into various services such as the App Store, Maps, Apple TV, and News, providing a glimpse into what an Apple search engine could look like.
Apple has reportedly been working on a next-generation search engine codenamed Pegasus, under the supervision of John Giannandrea, Apple’s senior vice president of machine learning and AI. This technology aims to provide more accurate search results and has already been implemented in some apps, with the potential to be incorporated into the App Store in the future. Additionally, Apple has made adjustments to its Spotlight search feature, which allows iOS users to find items on their devices. While Apple initially used Bing or Google for web search results, they have been experimenting with incorporating their own search capabilities.
This speculation about Apple developing its own search engine coincides with the ongoing antitrust lawsuit against Google by the US Department of Justice. Apple has been involved in the lawsuit as a witness due to its multibillion-dollar agreement that designates Google as the default search engine on iPhones. The US government accuses Google of maintaining a monopoly in online search and ad sales.
During his testimony in the lawsuit, Giannandrea reportedly revealed a new feature in iOS 17 that enables users to change the default search engine on their iPhones when using Safari in private browsing mode. In iOS 17, which accompanies the new iPhone 15 and iPhone 15 Pro, users can set separate default search engines for regular browsing and private browsing.
Apple has not yet responded to requests for comment on these developments.