Samsung Electronics has suspended an internal review on whether to replace Google with Microsoft’s Bing as the default search engine on its web-browsing app, which comes pre-installed on the company’s smartphones. This decision comes after shares of Google-parent Alphabet gained more than 1 percent in premarket trading, while Microsoft shares were down about 1 percent. The Wall Street Journal reported on Friday that Samsung will not change the default search engine to Bing any time soon, citing people familiar with the matter.
The Revenue Stream of Search Engine Companies
Search-engine companies earn a considerable part of their revenue from long-term partnerships with phone makers like Apple and Xiaomi. According to an April 16 report by the New York Times, Google earns an estimated $3 billion (roughly Rs. 24,625 crore) in annual revenue from the Samsung contract. Microsoft, Samsung, and Google did not immediately respond to Reuters requests for comment.
Microsoft’s AI-Powered Bing Search Engine
The integration of OpenAI’s artificial intelligence technology into Microsoft-owned Bing has driven people to the search engine and helped it compete with market leader Google in page visits growth, according to data from analytics firm Similarweb. The threat of Samsung potentially shifting to Bing weighed on Alphabet’s shares at the time. Google’s reaction to the threat was “panic” as the company earns an estimated $3 billion (roughly Rs. 24,625 crore) in annual revenue from the Samsung contract. The report last month also mentioned that Google is racing to build an all-new AI-powered search engine that would offer a more personalized experience than its current service, which is also set to be upgraded with AI features.
Final Thoughts
Samsung’s decision to suspend its review of replacing Google with Bing as the default search engine on its web-browsing app will come as a relief to Alphabet and Google, whose revenue stream would have been affected by such a move. The integration of OpenAI’s artificial intelligence technology into Microsoft-owned Bing has led to an increase in page visits growth, which has helped Bing compete better with market leader Google. However, Google is reportedly racing to build an all-new AI-powered search engine that will offer a more personalized experience than its current service.
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