An analyst suggested an opinion that makes Apple effectively pressure Google, by acquiring the famous search engine DuckDuckGo Especially as it focuses heavily on the issue of privacy, this is not what Apple will earn from advertising revenue, so can Apple take a step like that?
The acquisition of DuckDuckGo puts pressure on Google
Bernstein analyst Tony Sakonagi says the $ XNUMX billion acquisition of privacy-focused search engine DuckDuckGo will allow Apple to pressure Google and tap into lucrative advertising revenue. And according to other Street Insider reports, acquiring DuckDuckGo could be a "Trojan horse" for pushing Google too hard.
Today, Google is known to dominate search engines. However, we suspect that the company's fear of at least destabilizing itself and exposing the estimated $ 15 billion in profits it gets from iOS could ultimately put an end to its work with Apple.
Now, Apple may be in a stronger position than it was, as it controls who can monetize iOS searches. Since it is inconvenient for Apple to rely on Microsoft's Bing search engine to act as a counterweight to Google, so it is suggested that Apple owns its own search engine.
It is currently believed that Google is paying Apple more than $ 10 billion, approximately, to be its default search engine on the iPhone and iPad. Sakonagi says that Google, in turn, earns about $ 15 billion from being the default search engine for Apple, but he warns that Google may withdraw from the agreement instead of renewing, because a large part of Apple's services revenue each year is due to the current arrangements between Google and Apple.
It is unclear whether Apple is willing to give up that annual payment from Google, or whether it will need to make more effort to compensate for that and achieve this income or more by purchasing its own search engine.
The acquisition of DuckDuckGo doesn't necessarily mean Apple has to change its agreement with Google. Alternatively, Apple could use its ownership of DuckDuckGo as leverage on Google and amend the terms of the agreement between them.
It is reported that Apple has for years put you the option to change the search engine to DuckDuckGo instead of Google simply by going to settings, then Safari, and then changing the search engine. Google pays Apple $ 9 billion, it said, in order to remain the default engine. Because it is mostly because no one is interested in changing the search engine, automatically the vast majority still use Google. So we must ask why Apple sacrifices the billions of dollars it receives annually from Google?