Apple (AAPL) search engine

By: ispeculatornew
Date posted: 04.13.2010 (10:23 am) | Write a Comment  (1 Comment)

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The idea is not new, it has been discussed both publicly and privately and so far, there does not seem to be anything behind it. But given the financial possibilities involved as well as the logical aspect of the move, it is impossible in my opinion to not consider this option for the company led by Steve Jobs.

Why do it?

A decade ago, there were about ten solid search engines that each had their qualities. Of course, when I say solid, I mean by that time’s standard. Obviously, things have evolved a lot since then but I do still think there is the possibility of having at least 5 or 6 different search engines. Obviously, the financial possibilities for a popular search engine are very intersting as Google has demonstrated in the last decade.

Why Apple?

Apple is quickly gaining control of the way many users access the internet. Through Ipod’s, Iphones, and now Ipad’s, many users are going through an Apple device to connect. That means that Apple’s default search engine will automatically get millions of hits every day, and could gain loyal users if its quality is up to par with others currently available on the market.

Also Apple has the luxury of having some of the most loyal consumers out there. Let’s face it, it’s not by chance that any new product gets millions of new users as soon as it is launched. Users trust the brand and the company. That is already much more than Microsoft which has that hill to climb. It might not be as steep as it was a few years ago, but still from this vantage point, Apple is perhaps the only company to be at par with Google.

Finally, Apple has loads of cash, which will be necessary for developping a search engine, a task that now requires hiring hundreds and hundreds of highly skilled engineers among other things.

Risks involved

To me, the risks are quite large because anytime Apple releases a product, it puts its reputation on the line and launching a search engine would be a major step and a major risk. Could it hurt its overall business if the search engine’s quality was not up to quality.

Effort required

This should not be undersestimated. Microsoft’s Bing had a lot already done and still needed a few years to get a decent product in the market. Apple has not worked on any projects similar to a search engine and

Good idea?

I remain skeptical because it is such an effort and would take years to develop. In the meantime, Apple does have some possibilities to make money by making a deal with Microsfot or Google. So while this may happen, I think Apple has had enough success with hardware to stay away from software/web efforts such as this one. But knowing what Steve Jobs has done since returning to Apple, I think it would be foolish to underestimate Apple in the search engine market.

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1 Comment

  1. Comment by Executive Suites — April 22, 2010 @ 4:04 am

    Apple may be working in a search engine as we speak, you can see they already have iAd for iPhone OS that will compete with Google in that area, so who knows what else they have in mind?

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