Google (GOOGL) stock dips after reports suggest Samsung may switch to Bing search
Samsung may be switching its default search engine from Google to Microsoft Bing for its smartphones, with Alphabet shares dipping as a result.
Reports have recently emerged that suggest Samsung may have plans to switch the default search engine for its lineup of smartphones from Google over to Microsoft Bing. As noted by outlets like The New York Times, Alphabet (GOOGL) shares dipped more than 3.5 percent as a result with Microsoft (MSFT) stock up around 1 percent.
Google spends billions each year for phone manufacturers to use its search engine, including an estimated $20 billion annually to Apple, as reported by outlets like CNBC. The sizable investment has been proven worth it for Google thus far in that it rakes in billions in advertising revenue in return. This can be seen in data from sources like StatCounter that show Google having more than a 90 percent share of the search market.
Google’s search engine dominance is so prominent, it’s currently in a heated antitrust battle with the Department of Justice over it, among other things, with the DOJ viewing Google’s “pay-to-play” model as having “harmful effects on competition and consumers.”
As for why Samsung may be contemplating a switch from Google to Bing, its deal with Google will be up for renewal soon. Obviously, Samsung doesn’t have to renew with Google if it feels like the partnership may not be as beneficial as it’s been in the past given factors like the DOJ’s interest in the fairness (or lack thereof) of Google’s search dominance.
As pointed out by CNBC, while Bing has long trailed behind Google, it saw a noticeable increase in interest following the launch of its OpenAI GPT-based chatbot, Bing Chat, which “spurred Google into an all-hands ‘code red’ response.” Not to mention, Samsung and Microsoft already have an established partnership with Microsoft Office apps coming preloaded on Samsung phones, and Samsung phones having built-in software to make it easier to connect them to Windows computers.
It’ll be interesting to see moving forward whether Samsung does in fact switch the default search engine for its smartphones to Microsoft Bing, or whether it’ll choose to renew its deal with Google. We’ll be sure to keep you posted as the situation develops. Until then, be sure to brush up with some of our previous coverage, including Google detailing its new AI supercomputer it hopes will rival NVIDIA, and a judge ruling that Google should be punished for its failure to preserve messages about the Epic Games case.
Morgan Shaver posted a new article, Google (GOOGL) stock dips after reports suggest Samsung may switch to Bing search