Recent reports suggest that Apple might be considering the development of its own search engine, a move that could potentially reshape the tech industry. For more than a decade, Google has held the position of the default search engine on iPhones, with estimates of Google paying Apple between $8 billion and $12 billion annually for this privilege. However, this lucrative partnership is under scrutiny by US authorities, who allege monopolistic behavior by Google in the online search and ad sales sectors.

In a recent Power On newsletter, Bloomberg’s Mark Gurman discusses the intriguing prospect of Apple entering the search engine arena. While Gurman concedes that this idea is a “long shot,” he points out that Apple has already integrated search functionality into various services, including the App Store, Maps, Apple TV, and News. Furthermore, Apple has quietly been developing a next-generation search engine, internally known as Pegasus, under the guidance of John Giannandrea, Apple’s senior vice president of machine learning and AI.

Pegasus promises improved search accuracy and is already incorporated into select apps, with the potential for wider adoption, possibly including the App Store. Apple has also been enhancing its device-based search feature, Spotlight, by integrating web search results. Previously, these results were primarily sourced from Google or Microsoft’s Bing.

Apple’s exploration of its own search engine coincides with the ongoing Google antitrust lawsuit led by the US Department of Justice. In this context, Apple’s role in the lawsuit has been pivotal, with inquiries surrounding its multi-billion-dollar deal with Google, designating Google as the default search engine on iPhones.

An interesting development is the introduction of a feature in iOS 17 that allows users to change their default search engine specifically for Safari’s private browsing mode. This feature, available on the latest iPhone 15 and iPhone 15 Pro models, empowers users to select distinct default search engines for regular and private browsing sessions.

While Apple has not officially commented on these recent developments, the question remains: Should Apple venture into the search engine realm? This potential move reflects Apple’s commitment to innovation and diversification of revenue streams, expanding beyond its traditional hardware-focused business model.