Samsung Might replace Google with Bing, Alphabet Loses $57B: A Market Update

Alphabet, the parent company of Google, saw a 4% decline in its shares following a report from The New York Times stating that Samsung Electronics is considering replacing Google with Microsoft-owned Bing as the default search engine on its devices. This move could put approximately $3 billion of annual revenue at risk for Alphabet, which also has a $20 billion contract with Apple up for renewal this year. While Samsung has a long-standing relationship with Alphabet and Microsoft, negotiations with the latter are ongoing. However, Google could still become the dominant search engine, but it would require users to change their phone settings. Google has been a market leader with about 90% share, but Microsoft recently incorporated OpenAI’s ChatGPT into Bing to tackle Google’s monopoly. Google is working on Magi, a personalised AI search engine, to take on its rivals like Bing and ChatGPT.