Analyst Argues Apple Should Acquire DuckDuckGo Search Engine

Apple should purchase a search engine to put pressure on Google, Bernstein analyst Toni Sacconaghi said Monday in a research report that was shared by Barron's.

duckduckgo
Apple and Google don't share details on the amount of money that Google pays to be the default search engine for iOS and Siri, but Sacconaghi estimates that it's around $7 to $8 billion per year, or 30 percent of the estimated $25 billion that Google generates in ad revenue from search on Apple devices.

Google has long paid Apple to prevent Apple from turning to other search engine options like Microsoft's Bing, but Sacconaghi believes that Google has the upper hand in business dealings because it could opt to end its Apple deal if it can convince 70 percent of iOS users to go to Google.com for searching even if it's not the default Safari option.

Apple doesn't have many alternatives to Google, with its only leverage being a swap to Bing, so Sacconaghi suggests that Apple should acquire its own search engine.

"Yes, Google is clearly the dominant force in search today. However, we suspect the company's fear of 'rocking the boat'--which could compromise $15 billion in profits it captures today from iOS--may ultimately limit its freedom of action with Apple. Conversely, Apple may be in a stronger position than at first glance, given it controls the keys to the kingdom on who can monetize iOS search. However, it remains uncomfortably dependent on Bing to act as a counterweight to Google--hence our suggestion that Apple acquire its own search engine."

As for which search engine, Sacconaghi thinks that DuckDuckGo, a privacy-focused search engine option, would be a good choice for Apple. Apple could, he speculates, buy it for under $1 billion, giving Apple a solid backup option that does not rely on Google or Microsoft.

"To be certain, we doubt an Apple-owned DuckDuckGo could ever generate profits sufficient to make back the $7 billion to $8 billion a year currently paid by Google. Nevertheless, Apple would still likely be better off than a worst-case scenario where it had no backup, and Google or Microsoft (one or the other) withdrew from the bidding process altogether."

DuckDuckGo would also be compatible with Apple's privacy values, offering iOS users a search option that is free from invasive ad tracking.

Sacconaghi warns that if Apple did attempt to purchase a search engine like DuckDuckGo, it could trigger regulatory oversight that could ultimately block the acquisition, putting Apple in a worse position than before. DuckDuckGo is also reliant on Bing, so Apple would need to make changes to be completely free of Microsoft's influence.

Apple previously used Bing for ‌Siri‌ and Spotlight on Mac and iOS, but in 2017 swapped over to Google for consistency across iOS and Mac devices. Apple has not been rumored to be seeking to make a search engine acquisition.

Top Rated Comments

icanhazmac Avatar
49 months ago
I've been using DDG exclusively for a few years now and have zero complains about their search returns. Don't really trust anything google anymore.
Score: 42 Votes (Like | Disagree)
entropys Avatar
49 months ago

I use DDG for most routine stuff, however, it you really need to find something obscure, DDG does not cut it.
sadly that is my experience as well. good enough most of the time though, and you aren’t letting the evil crew at google know what you are up to.
Score: 23 Votes (Like | Disagree)
nt5672 Avatar
49 months ago
I use DDG for most routine stuff, however, it you really need to find something obscure, DDG does not cut it.
Score: 23 Votes (Like | Disagree)
avtella Avatar
49 months ago
I tried DuckDuckGo and Bing with a pretty open mind, they were unfortunately both pretty terrible if you do anything more than very simple searches. From searching on computer issues and coding all the way to things like research articles; simply typing or pasting parts of a reference article or title gives excellent results in Google but DuckDuckGo and Bing usually gave results that were no where near what I needed and at times results were let’s just say pretty out there. All that data collection is basically why Google usually gives better results.

In my experience searching for maybe a famous person or an animal I’d probably not notice a difference between the three but get into some hard searches ie research/science concepts/phrases or sections of articles and books etc, and Google is the only one that consistently gives proper results for me. With the Bing and DuckDuckGo I ended up wasting a lot more time scrolling through a few pages just get one or two proper results.
Score: 15 Votes (Like | Disagree)
arn Avatar
49 months ago

Is DDG using google, just scrubbing user identification?
https://help.duckduckgo.com/results/sources/

To do that, DuckDuckGo gets its results from over four hundred sources. These include hundreds of vertical sources delivering niche Instant Answers, DuckDuckBot (our crawler) and crowd-sourced sites (like Wikipedia, stored in our answer indexes). We also of course have more traditional links in the search results, which we also source from multiple partners, though most commonly from Bing (and none from Google).
Score: 9 Votes (Like | Disagree)
rgeneral Avatar
49 months ago
Please no. Leave the Duck alone!
Score: 9 Votes (Like | Disagree)

Popular Stories

iPhone 16 Camera Lozenge 2 Perspective Gray

Five Key Upgrades Coming to iPhone 16

Friday March 15, 2024 1:45 pm PDT by
The iPhone is Apple's top-selling product, and it gets an update every year. In 2024, we're expecting the iPhone 16 and iPhone 16 Pro lineup, with an arguably more interesting feature set than we got with the iPhone 15 and iPhone 15 Pro. Subscribe to the MacRumors YouTube channel for more videos. Capture Button All four iPhone 16 models are set to get a whole new button, which will be...
When To Expect New iPads Feature 1

Apple to Announce New iPads on March 26, Rumors Claim

Monday March 18, 2024 4:02 am PDT by
Apple is widely expected to release new iPad Air and OLED iPad Pro models in the next few weeks. According to new rumors coming out of Asia, the company will announce its new iPads on Tuesday, March 26. Chinese leaker Instant Digital on Weibo this morning 日发布%23">claimed that the date will see some sort of announcement from Apple related to new iPads, but stopped short of calling it an...
airpods 3 orange

Two New AirPods 4 Models Expected to Launch in September or October

Sunday March 17, 2024 7:56 am PDT by
Apple suppliers will begin production of two new fourth-generation AirPods models in May, according to Bloomberg's Mark Gurman. Based on this production timeframe, he expects the headphones to be released in September or October. Gurman expects both fourth-generation AirPods models to feature a new design with better fit, improved sound quality, and an updated charging case with a USB-C...
iphone se 4 modified flag edges

iPhone SE 4 Expected to Depreciate Heavily

Tuesday March 12, 2024 9:04 am PDT by
Resale value trends suggest the iPhone SE 4 may not hold its value as well as Apple's flagship models, according to SellCell. According to the report, Apple's iPhone SE models have historically depreciated much more rapidly than the company's more premium offerings. The third-generation iPhone SE, which launched in March 2022, experienced a significant drop in resale value, losing 42.6%...
iOS 17 Passkey With Apple ACCOUNT Feature

'Apple ID' Expected to Change to 'Apple Account' Starting With iOS 18

Sunday March 17, 2024 7:13 am PDT by
MacRumors was first to report that Apple was planning to rebrand "Apple ID" to "Apple Account" across its software platforms and websites like iCloud.com as early as this year, and now Bloomberg's Mark Gurman has corroborated this change. A mockup of the new Apple Account branding In his Power On newsletter today, Gurman said the new "Apple Account" branding will start to be used later this...
General iOS 17 Feature Orange Purple

iOS 17.4.1 Update for iPhone is Imminent

Monday March 18, 2024 5:27 am PDT by
iOS 17.4.1 and iPadOS 17.4.1 should be released within the next few days, with a build number of 21E235, according to a source with a proven track record. MacRumors previously reported that Apple was internally testing iOS 17.4.1. As a minor update for the iPhone, it will likely address software bugs and/or security vulnerabilities. It is unclear if the update will include any other changes. ...
M3 iPad Feature 3

New iPads Likely to Begin Shipping in April

Monday March 18, 2024 9:52 am PDT by
Apple's new iPad Pro models with OLED displays will likely begin shipping to customers in April, according to information shared today by Ross Young, CEO of display industry research firm Display Supply Chain Consultants. Bloomberg's Mark Gurman also said the new iPad Pro models might not ship until "deeper" into April in his Power On newsletter on Sunday:I've repeatedly said that new...