Popular tech analyst Mark Gurman has suggested the possibility of Apple Inc. (NASDAQ: AAPL) developing its own search engine, potentially replacing Alphabet Inc.'s (NASDAQ: GOOG) (NASDAQ: GOOGL) Google. "it may be closer than you think."
What Happened: In his weekly newsletter, Gurman said that Apple has long been pondering the prospect of reducing its reliance on Google.
The company's years of tinkering with search technology have not gone unnoticed. It can be seen in its services like the App Store, Maps, Apple TV, and News, where Cupertino has built its own search engines.
Furthermore, the iPhone maker's focus on search is evident in Spotlight, which helps users find things on their devices. Apple previously added web search results to Spotlight, using Microsoft Corporation's (NASDAQ: MSFT) Bing or Google for these results at different times.
Apple has also made acquisitions and investments in AI and search technologies. One of them is Laserlike, an AI-based search engine, which could be foundational for a potential Apple search engine game changer.
John Giannandrea, formerly of Google and now overseeing AI at Apple, leads a substantial search team, suggesting Apple's dedication to improving its search capabilities, according to Gurman.
"Giannandrea's team is now looking to more deeply integrate Apple's search features into the iOS and macOS experience - and potentially bolster the technology with its new generative AI tools," he said.
Although launching a full-fledged Apple search engine may not be imminent, the company's relentless pursuit of enhancing its search capabilities indicates that it's not a matter of "if" but rather "when," said Gurman.
Why It's Important: Previously, it was reported that Apple had the chance to buy Bing, a search engine, but they declined.
Eddy Cue, Apple's senior vice president, during his testimony in the ongoing legal battle between the U.S. Department of Justice and Google, said that Apple doesn't see a need to create its own search engine because Google's search is the best.
However, according to Gurman, this argument might be more about protecting Google from potential legal issues. If the U.S. government decides that Google has broken antitrust laws, its partnership with Apple could be in jeopardy, potentially costing Apple billions of dollars.
Meanwhile, it is worth noting here that Apple stopped supporting Google's mapping database in 2012 and released its in-house Maps app. The Apple Maps app had a rocky start but earlier this month it was reported that Google's map usage on iPhone witnessed a drastic decline, with the search giant recovering just 40% of its former mobile traffic since Cupertino switched to its own mapping service.