Alphabet Stock Plummets fell down as much as 4 % on Monday, losing the company about $55 Billion in market value. This was after The New York Times Report that suggested Samsung could replace Google Search with Bing on their smartphones.
If the Deal Goes Through…
If Samsung replaces Google with Bing, Alphabet could lose about $3 billion in annual revenue. Moreover, a similar contract between Apple and Alphabet Stock Plummets worth around $20 billion is due for renewal later in 2023.
The news that Samsung could replace Google with Bing came as a shock to Google employees. The internal messages from Alphabet employees, reviewed by The New York Times, showed panic among the staff.
Google facing Competition after a long time
For the first time in decades, Google is facing the heat of the competition in its search department. Notably, Microsoft’s integration of ChatGPT in the Bing search results is one of the primary reasons for the increased competition. Before this, Google held a monopoly on the search market with a whopping market share of close to 90%.
Alphabet Stock Plummets as Samsung Considers Replacing Google Search with Bing
Alphabet Working Hard to Defend Market Share
Amidst this chaos, Alphabet is not sitting still as it aims to defend its Market Share. According to a report, Alphabet is working hard with a team of more than 160 people to integrate AI features into its Google Search product.
Google incorporating AI into its search products might not be enough however if Samsung does make Bing its primary search engine. This would be a huge blow to Google with Samsung shipping millions of devices every year globally.
It is worth noting that it would still be possible to make Google your default search engine, but the deal between Samsung and Microsoft would mean that users will need an extra step to achieve that.
The Deal Is Still Ongoing
Samsung is not a stranger to both Google and Microsoft, as it has worked closely with both companies for a long time. One good example of this relationship is the numerous pre-installed apps on Samsung devices.
However, the negotiations between Samsung and Microsoft are still underway and it is possible that Samsung would again choose Google as its default search engine, said a report.
