Brandon Mullins

Apple's Search Engine Possibilities

Is it within the realm of possibility that Apple could release a self-branded search engine to jump into the ring with Google, Bing/Yahoo!, and Ask? Yes, but not in the form that most are thinking.

Brewing Battle
The battle between Apple and Google is heating up on various levels across various service platforms, namely with internet browsers (Chrome vs. Safari) currently, but in the near future the two will clash around the markets of mobile hardware, software, and applications. In a nutshell, Apple and its close wireless partner, carrier AT&T, envision a more closed, controlled system of tightly integrated devices (hardware), software and services. Google, on the other hand, sees a completely open Mobile Internet with open smartphone operating systems and communications networks that will allow any company to compete. The intense and brewing rivalry started to show when Google CEO, Eric Schmidt, resigned from (or was asked to leave) Apple’s Board of Directors in August. Another Apple director, Genentech CEO Arthur Levinson, left the Google board not long after. He did this, ostensibly, to avoid conflict of interest.

Apple Search Possibilities
Google is currently the default search engine on the iPhone’s Safari browser; surely Google pays Apple for this pleasure. Thus, if Apple chose to create its own search engine, as many have speculated may occur, it would forgo a nice source of revenue across its mobile devices, in addition to footing the massive R&D and Product Development bill to create its own engine from scratch.

If Apple were to produce a self-branded search tool on Macs, iPhones and iPods, they could bring in (mobile) advertising revenue directly, rather than indirectly through Google at a lower net income. However, rather than indulge in a massive undertaking of resources to create an also-ran search algorithm (not a core competency of the company, clearly), Apple’s best move may be to simply power the front-end, user experience of a mobile search tool (an obvious core talent & focus of Apple). The company could partner with Google (or Bing) to utilize their search algorithms to power the back-end results, while Apple focuses on the interaction on the front-end. A rev-share model between the two could be designed.

Apple’s Best Strategy
Then again, the real answer might be, Apple won’t monetize search. It can simply utilize search as a way to differentiate the iPhone. Let’s face it; mobile search in its present form is still very clunky with hard-to-read pages and lots of fumbling on touch-screen menus. One area where Apple has a clear advantage is development of innovative user interfaces that simplify complex tasks. This could be a draw for smartphone users who utilize the mobile internet extensively, but on other devices with less intuitive search interfaces.

If Apple made a truly great search engine for mobile devices that was only available on the iPhone, this could provide a serious sales boost and might help defend Apple’s franchise position as the top dog in the smartphone world.

It would be great to see Google and Apple collaborate on next generation search. Between Google’s immense respect for relevant information and data analytics, and Apple’s ability to weave it into a seamless and amazing experience, a truly next generation mobile search experience could occur.

Brandon Mullins