Apple's Potential Google Rival: Exploring the 'Pegasus' Search Engine

Apple, long dependent on its lucrative deal with Google, is now contemplating a potentially game-changing move into the world of search engines. Currently, Apple earns a substantial $8 billion each year thanks to its agreement with Google, which designates Google as the default search engine on all Apple devices, including iPhones, iPads, and Macs. However, the tech giant may seek a more substantial revenue share by entering the search engine arena itself, a shift that could be as significant as its successful Apple Watch line.

A recent report by Bloomberg's Mark Gurman has revealed Apple's strategic efforts to enhance its web search capabilities. Initially, these improvements were aimed at strengthening Apple's negotiating position with Google. Nevertheless, Apple has now turned its focus toward the development of a new-generation search engine, code-named 'Pegasus,' primarily intended for Apple apps.

John Giannandrea, a former Google executive who now leads Apple's machine learning and artificial intelligence division, is spearheading this ambitious project. His team is diligently working to ensure more precise search results, already integrated into some Apple apps, and soon to be accessible on the Apple Store itself.

The Google-Apple partnership dates back to 2002 when Google was initially selected as the default search engine for Apple's Safari browser. This partnership has undergone numerous revisions over the years. Eddy Cue, Apple's senior vice president of services, recently emphasized the company's proficiency in internet search during the Google antitrust case, stating that Apple excels in this domain.

Cue noted that back when Apple first entered this partnership, there were no viable alternatives to Google. The prospect of selecting any other search engine was never seriously considered, and this decision has significantly contributed to the robust partnership between the two tech giants over the years.