Alphabet Inc, the parent company of Google, is reportedly facing a major threat as Samsung Electronics considers replacing Google with Microsoft’s Bing as the default search engine on its devices. Shares of Alphabet Inc took a hit on Monday, falling by up to 4% after the New York Times published the report over the weekend.
Alphabet was headed for its biggest single-day decline in more than 2 months following a report that Samsung has considered replacing Google with Microsoft’s Bing as the default search engine on its devices.@mhbergen reports https://t.co/4QYpzr7sBk pic.twitter.com/vBjZBx5tTn
— Bloomberg (@business) April 17, 2023
According to the report, Google is in a state of “panic” as it earns an estimated $3 billion in annual revenue from the Samsung contract alone. This is in addition to another $20 billion tied to a similar contract with Apple that is up for renewal this year.
Bing, which has been considered a minor player in the search engine market, has recently risen in prominence after the integration of artificial intelligence technology behind ChatGPT. This development has given Bing an edge over its competitors, including Google, which now face the challenge of keeping up with the latest technology.
The threat posed by Bing is a significant one for Google, which has dominated the search engine market for years. The company now faces the prospect of losing a major source of revenue if Samsung decides to switch to Bing. This could have a significant impact on Google’s bottom line and could prompt the company to take drastic measures to retain its market share.
For now, all eyes are on Samsung as the company weighs its options. Will it stick with Google or will it make the switch to Bing? Only time will tell, but one thing is clear: Google is in panic mode and is scrambling to find a way to retain its position as the top search engine in the market.