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Apple’s Siri is Eating into Google’s Profits

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Google’s former CEO and executive chairman Eric Schmidt told U.S. Senators that Apple’s voice-recognition system is an “interesting development,” suggesting the feature posed a “competitive threat” to its search business.

“Google has many strong competitors and we sometimes fail to anticipate the competitive threat posed by new methods of accessing information,” Schmidt writes.

Schmidt’s written comments come as a new reports finds that Siri drastically reduces the number of Google searches, many times to none.

The non-scientific report of 40 Siri users found that the feature greatly reduced the users’ dependence on Google search, with 27 users reporting that they haven’t used Google search once since they got the iPhone 4S and 13 reporting an average of two searches. These users would have previously averaged 10+ Google searches during the same period.

Much of Google’s income comes from the advertisements that appear alongside search results. If mobile phone users adopt voice rather than text for their searches ad revenue could be lost.

[MarketWatch]

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  • Anonymous

    Just buy Wolfram Alpha

  • K3

    “we sometimes fail to anticipate the competitive threat”
    Evidently that wasn’t a problem for Steve.

    *

  • Mistawha

    Siri doesn’t cut into Google profits, what an asnine topic header there bud. Not even sure why you came up with that conclusion based off people who use a non-android phone. You may want to read all the questions he answered as this was one of them. Also i hope you realize Google generates revenue by other means than just Google Search. Oh and just to let you know, there is a good survey out there thats more credibal that shows people on Iphones use Bing more than Google because its intergrated into the OS. Quit trolling for comments and find better more realiable crap to post and fact check my friend.

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