pple is now planning to add AI-powered search options to its browser, Safari, to compete with Google's browser. Those changes are aimed at iPhone customers
using its search engine. The news came slamming Google shares, closing down 7.3%, erasing roughly $150 billion from its market value.
The iPhone maker was also “actively looking at” reshaping Safari, a source that remains familiar with the matter reported for Reuters. Eddy Cue, an executive from Apple, has mentioned that Safari had a drop for the first time last month as users were increasingly turning to AI. And, as a result, Apple stock closed down by 1.1%.
Google also mentioned that it will be continuing to see growth in the overall number of search queries, which also includes “total queries coming from Apple's devices and platforms," according to a statement posted on the company’s blog.
The company also wrote, "People are seeing that Google Search is more useful for more of their queries — and they’re accessing it for new things and in new ways.". Google has also been citing voice and visual search features as a way to contribute to total search volume growth.
However, it was unclear whether the cue was using the same means of comparison in his comments when analysing different types of searches. Yet, the Apple executive’s comments suggest that a major shift in search queries is likely underway.
This change also comes as a threat to Google’s dominance in the search business. Google is the default search engine on Apple’s browser, a position for which it pays the iPhone will make roughly $20 billion a year. This translates to about 36% of its search advertising revenue, which is generated through the Safari browser.
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The US Justice Department also proposed banning the default search engine used by Google, as the company was paying tech manufacturers to integrate Google as their default search engine.
D.A. Davidson analyst Gil Lauria said that “The loss of exclusivity at Apple should have very severe consequences for Google even if there are no further measures”, also adding that “Many advertisers have all of their search advertising with Google because it is practically a monopoly with almost 90% share. If there were other viable alternatives for search, many advertisers could move much of their ad budgets away from Google”.
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