Apple may earn its next $25 billion, even without trying.
And despite Microsoft and Google’s rush to introduce artificial intelligence (AI) chatbots, Apple may have no immediate reasons to join the fray.
The iPhone maker, and currently the world’s 7th largest company, could be in the perfect position to profit from the ongoing AI war.
All without competing with anyone.
Here’s how.
Google and Microsoft Could Compete for Apple Soon
Google reportedly pays Apple $15 billion yearly to remain as a default search engine for billions of iOS devices.
And soon, Microsoft could challenge this position and offer a higher bid for this much-prized ‘default supremacy.’
Alexandr Wang, CEO of Scale AI, an artificial intelligence data platform company, even made this bold prediction:
Apple currently has over two billion active devices worldwide, a kingdom come for any company that operates search engines.
Google’s default presence in iOS is one of the main reasons for its search business dominance.
It now commands a 93% share of the global market, leaving a very narrow space for more competition.
But users’ ‘taste’ has been slowly changing since ChatGPT‘s release last November 2022.
Through this AI chatbot, many users have learned to love direct and conversational answers to their questions.
They’ve discovered that going through piles of links isn’t the best way to search anymore.
And they will keep longing for it.
Google’s Dilemma
Google may soon have no choice but to choose between its billion-dollar ad business or its relevance in the changing search landscape. On February 7, the company introduced its horse in the chatbot race – known as Bard.
By having a ChatGPT-like search engine, its ad revenue could erode, with no one having to click many links on its massive platform.
But if it doesn’t adapt, its search dominance could shrink, allowing other competitors to swoop in, especially Microsoft.
In fact, MSFT was the first big company to recognize and capitalize on the shifting search environment.
Its recent fusion of ChatGPT into its Bing and Edge platforms was a clear sign of its growing interest in AI-powered search.
Microsoft’s Bing currently has an estimated 3% of the global search business.
But getting ahead of Google could present key opportunities for a possible dominance in the AI arena.
Can Bing Really Challenge Google?
In case you’re wondering if Bing’s buzz would be short-lived, let’s look at its new AI features, which could challenge Google’s supremacy soon.
ChatGPT + Accuracy
Bing users can now receive ChatGPT-like search results, but with emphasis on accurate answers.
Through this, it can avoid “hallucinations,” an instance where credible-sounding but wrong answers are produced.
Ability to Answer Complex Questions
Users can now ask Bing more complex questions like planning an itinerary for a trip or creating personalized meal plans.
They can ask almost all sorts of questions that current search engines cannot answer directly.
Create New Content with Prompts
It can now generate new text content for users with just simple prompts, like ChatGPT.
And since Bing is more powerful than the standalone ChatGPT (thanks to GPT4), it can potentially create better content for users.
Apple May Still Win in the End
The features above are clearly ahead of what Google search engine can offer right now.
And if the internet giant fails to outdo Microsoft (and do it right), it’s not hard to imagine seeing a new default browser soon on our iOS devices.
But regardless of who wins in this race, Apple still triumphs in the end.
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