Alphabet shares fell on reports that Samsung is considering replacing Google Search with Microsoft’s Bing as the default search engine on its devices. This news comes as a blow to Alphabet, which generates a significant portion of its revenue from Google Search. The reports indicate that Samsung has been testing Bing as an alternative search engine and is considering making the switch as early as next year. This move could significantly impact the search engine market, which has been dominated by Google for years.
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Industry experts believe that Samsung’s decision to switch to Bing could have ripple effects, with other smartphone makers following suit. This could lead to a significant loss of market share for Google, which currently holds a 92% share of the global search engine market. However, it remains to be seen whether Bing can effectively challenge Google’s dominance.
Alphabet’s shares fell by more than 2% following the reports, highlighting the potential impact of Samsung’s decision on the company’s revenue. Google Search is a key driver of revenue for Alphabet, generating more than $100 billion in advertising revenue in 2020. Losing Samsung as a partner could mean a significant loss of revenue for the company.
However, some analysts argue that the impact of Samsung’s potential switch to Bing may be overblown. They point out that Google Search is deeply embedded in the Android operating system, which powers most of Samsung’s smartphones. Users may still choose to use Google Search even if Bing becomes the default option.
Nevertheless, this news comes at a challenging time for Alphabet, as the company faces increasing scrutiny from regulators over its dominance in the search engine market. The company is also dealing with antitrust lawsuits in the US and Europe, which could lead to significant fines and even force the company to change its business practices.