Microsoft CEO Satya Nadella recently appeared on the BG2Pod podcast, where he discussed various topics, including the rivalry with Google. One of the most striking statements he made was regarding how much Google profits from Windows, despite the competition between the two companies.
Google’s Dominance in the Search Engine Market
Nadella shared a revealing observation: “Google makes more money on Windows than all of Microsoft. Literally. Wow, this is the best news for Microsoft shareholders. We lost so much that we can now fight them and win back some of the company’s share.” This comment underscored Microsoft’s struggle to match Google’s success, especially in the search engine space. Nadella admitted that Microsoft is currently behind in the search engine war and expressed the company’s past efforts to make a deal with Apple.
According to Nadella, Microsoft had once attempted to partner with Apple, hoping to make Bing the default search engine on Apple devices. The company was prepared to spend $15 billion per year on this deal. However, the agreement never materialized, and the exact reason remains unclear. It’s widely believed that Apple made a conscious decision not to pursue the deal. An Apple representative had previously stated, “I don’t believe there’s a price in the world that Microsoft could offer us. They offered us Bing for free. They could have given us the whole company.”
Apple’s Rejection of Bing and Microsoft’s Continued Struggles
Additionally, there was speculation in 2021 that Apple was considering purchasing Bing from Microsoft. However, the company ultimately decided against it, citing significant issues with search quality. This rejection added another layer of complexity to Microsoft’s ongoing search engine struggles, especially as the company faced increasing competition from Google.
NIX Solutions reminds that Google and other browser developers formed a coalition against Microsoft, further complicating the Redmond-based company’s efforts to break into the search engine market.
Despite these challenges, Nadella remains optimistic, implying that Microsoft’s position is not hopeless. He suggested that although the company faces tough competition, there are opportunities to regain market share in the long run. We’ll keep you updated as more integrations become available.