So recent news has indicated that Google has everything to lose. Microsoft AI Bing appears to be significantly more useful than Google’s search engine.
Since Google pays Apple an estimated 20billion per year to be the default search engine on IOS, Apple has the most powerful position in this war. They can easily negotiate a new contract with Microsoft. This will absolutely destroy Google’s business. The only way for Google to maintain its position as the default browser would be to pay more than Microsoft or invest heavily into the technology. Either way, their margins get hit.
Microsoft has nothing to lose but some of its massive cash position. But the obstacle stopping mass adoption of Bing would be Apple’s position as Judge, Jury and Executioner.
My thoughts going forward? Apple is the king, and this further proves it. Whilst Google and Microsoft fight for search, Apple laughs at the two companies whilst it attaches any price tag it wants for the default browser. So Apple is the only company that’s currently profiting from the war. If GOOG or MSFT don’t pay up, AAPL can go create their own search engine and seamlessly integrate it into their devices. My conviction in Apple is now stronger.
Leave a Reply