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It was less than 5% of their revenue last quarter, it’s a chuck, but I think Apple will be ok.
Less than 5% of their revenue stream, but all of that 5% is profit. That will reduce their net profit margin from 25% to 21%. That's not going to look good to Wall Street.
 
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This won’t change the fact everyone will still use google
This would be true in a static world. I don't like Google. So, I've tried using Bing, Ecosia, and DuckDuckGo. I even set them to be the default search engines on different devices. I'll be damned if half the time I don't wind up going to Google to find the results I'm looking for. It is frustrating because I really don't want them to get my business. Unfortunately, the search engines really do suck hard.

Fortunately, the world is not static. Both Bing and OpenAI are integrating AI with search in ways that have the potential to give the current Google search paradigm a true market challenge.
 
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This would be true in a static world. I don't like Google. So, I've tried using Bing, Ecosia, and DuckDuckGo. I even set them to be the default search engines on different devices. I'll be damned if half the time I don't wind up going to Google to find the results I'm looking for. It is frustrating because I really don't want them to get the business. Unfortunately, the search engines really do suck hard.

Fortunately, the world is not static. Both Bing and OpenAI are integrating AI with search in ways that have to potential to give the current Google search paradigm a true market challenge.
Bingo on both points!
 
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The paid agreement that Google has with Apple to be the default search engine on the iPhone and other Apple devices violates antitrust law, a federal judge ruled today (via Bloomberg).

Google-Logo-Feature-Slack.jpg

Google has long paid Apple billions of dollars a year to be the default Safari search engine, and this relationship has been under scrutiny as Google battles antitrust allegations made by the United States Justice Department. The court today found in favor of the DoJ, and said that Google is indeed shutting out competition by paying smartphone makers for default status.

Google's agreements with Apple and other smartphone makers have a "significant effect" maintaining Google's search monopoly, keeping other search engines from competing and reinforcing Google's dominant position. Google has a search market share of around 95 percent on smartphones, in part due to the money that it pays.

In 2022, Google paid Apple $20 billion, an amount that incentivizes Apple to stick with the status quo. Apple does not provide opportunities to other search engines, nor does it develop its own search product due to the money that it receives from Google, according to the DoJ.

After considering testimony from Apple, Google, Microsoft, and other companies, the court decided that Google has a search monopoly. "Google is a monopolist, and it has acted as one to maintain its monopoly. It has violated Section 2 of the Sherman Act," reads the ruling.

The court will need to decide on the next actions to take to address Google's anticompetitive practices, and injunctions could be forthcoming.

Google and Apple could in the future be barred from entering into search agreements, which will result in a revenue loss for both companies. Apple will not get billions for promoting Google Search, and Google will lose out on being the default option across billions of Apple devices.

Google is likely to appeal the decision.

Article Link: Google and Apple's Search Engine Deal Violates Antitrust Law
But what to do? People still want it to be the default anyway.
 
I never understood why Google has been paying them so much in the first place. Maybe to detract Apple from developing a search engine of their own.
Yeah, seems excessive to me. It’s not like there’s a good alternative. The only alternative would be for Apple to develop their own search engine.
 
So if Apple develops their own search engine and installs it as the default, will that also violate anti-trust laws? If so, what would be the incentive for Apple to develop one in the first place? All this seems to be doing is making more work for the end user. I suspect that iPhones will include a choice upon setup and as many have already said, I bet most people will stick with Google (unless Apple drops it far down on a list)

Apparently yeah.

But android phones ship with google services by default (and google search) yet they seem ok? or is it ok because technically it's a third party (e.g. samsung) configuring it like that.
 
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In Neil Cybart’s world there’s no news that isn’t ever anything but good news for Apple. In this case if Google and Apple’s search deal has to end then Microsoft will swoop in and pay Apple even more than Google was. I’m surprised the company hasn’t hired him yet to work in their PR department. 😂

A problem with his theory is that with Google out of the default picture, there's really only one company left in a realistic position to pay Apple in the billions to be the default search. Being the only contender and having no one "bidding" against them, Microsoft now has less of a reason to pay up to or above Google level to be that default.
 
It won't be easy to plug that 20 billion dollar hole in the income statement. I'm just pointing out, that an Apple search engine with ads would be one way to do it.
That sounds like short term thinking which Apple rarely does. It also sounds like a slam dunk for another monopoly ruling against Apple. The most popular phone platform defaults to their own search engine. Even Apple fans can see the clear violation.
 
It won't be easy to plug that 20 billion dollar hole in the income statement. I'm just pointing out, that an Apple search engine with ads would be one way to do it.
search engines are going extinct. AI is the new wave and Apple will make that money back as they charge us for tiered AI services. Probably bundle it in with iCloud+ storage options or Apple One.
 
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