Why Apple Won't Build a Search Engine (and Why That's Okay with Them)
In a move that surprised absolutely no one, Apple has made it clear they have no intention of entering the search engine arena. While the prospect of an Apple-branded search experience might pique the curiosity of tech enthusiasts, a closer look reveals this is a shrewd decision that aligns perfectly with Apple’s core business strategy.
Eddy Cue, Apple’s senior vice president of Internet Software and Services, recently filed a declaration, reported by Reuters, with a U.S. federal court outlining the company’s rationale. Cue’s arguments are compelling, painting a picture of a project fraught with challenges and misaligned with Apple’s strengths, stating the following:
The development of a search engine would cost Apple “billions of dollars” and “take many years,” and this would divert investment money and employees away from “other growth areas” that the company is focused on.
The search business is “rapidly evolving” due to artificial intelligence, so it would be “economically risky” for Apple to create a search engine.
In order to create a “viable” search engine business, Apple would be required to “sell targeted advertising,” which is “not a core business” for the company and would go against its “longstanding privacy commitments."
Apple does not have enough “specialized professionals” and “operational infrastructure” needed to build and run a successful search engine business.
But here’s the kicker: Apple doesn’t need to build a search engine. Their lucrative partnership with Google, where Google pays a hefty sum to remain the default search engine on Apple devices, is a cash cow. This arrangement provides Apple with a steady stream of revenue without the headaches and risks associated with building and running their own search engine.
In essence, Apple has recognized that sometimes the best strategy is to double down on your strengths and forge strategic partnerships. By focusing on what they do best – creating beautiful, user-friendly devices and cultivating a loyal customer base – Apple can reap the rewards of the search market without getting their hands dirty.
This decision underscores Apple’s pragmatic approach to business. They understand that not every battle is worth fighting, and sometimes the most profitable path lies in collaboration, not competition. And with Google effectively bankrolling a significant portion of their business, it’s a strategy that seems to be paying off handsomely.