Of course, this is all speculation at this point, but there are several underlying factors that make an Apple jump into the online search world a distinct and real possibility. Some of the factors seem to be more of the personal variety, while others are more practical and factual.
The first set of reasons for the possible venture into online search by Apple is its past success. As mentioned, the iPhone and iPod were instrumental in boosting the Apple brand. The perceived quality of these products has helped to boost sales of Apple’s Macbook. While some may see this as not too big of a deal, many recent Macbook sales come from consumers who did not previously own Mac computers. The product is certainly not cheap either, so one one could assume that the Apple stamp has something to do with the sales boost.
Another possible factor that could help move Apple into the online search market is its competition, particularly with Google. As it currently stands, Google is the king of the search world. Not even old mainstays within the search market such as Yahoo have been able to curb Google’s ascent in online search. Google’s revenue derived from their online search tools has allowed them to expand into other areas, such as that of smart phones with their new Android devices.
Of course, the Androids have now become competition for Apple’s iPhone, which accounts for 40 percent of Apple’s revenue. Add to this competition the fact that both Google and Apple have gone back and forth with hiring essential employees from one another, and you have some grounds for this battle to become a personal one.
So, how can Apple counteract Google? Well, since Google has gone after the iPhone, Apple’s prized product, by introducing the Android, why not go after Google’s golden boy, online search? Apple certainly has the means to do so, and their recent acquisition of mobile search personal assistant Siri could be a slight hint as to their future online search intentions.
Everything seems to be in place for Apple to make such a move. The company is flush in cash and stock, and there is room to enter the market, as Microsoft and Yahoo plan to join efforts with regards to their online ad programs. This gives Apple the perfect opportunity to introduce itself to the online market and start off in third place behind Google and the Microsoft/Yahoo tandem.
It remains to be seen what Apple will do, but it is highly doubtful that they will sit with their hands in their laps as their competitors continue to grow.
For more on this, visit: http://seekingalpha.com/article/202015-would-apple-look-smart-to-enter-online-search-fray