Samsung (GB:SMSN) has reportedly put on hold an internal review that was considering replacing Google (NASDAQ:GOOGL) (NASDAQ:GOOG) with Microsoft’s (NASDAQ:MSFT) Bing as the default search option on its smartphones. The Wall Street Journal, quoting individuals acquainted with the situation, reported that Samsung has decided against continuing the discussion at this moment but has not entirely dismissed the possibility of collaborating with Microsoft in the future. The decision was allegedly influenced by worries about how the change might be perceived and its potential impact on Samsung’s broader business relationship with Google.
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Google’s Chrome browser is currently the preinstalled search engine on the majority of Samsung smartphones, most of which use Google’s Android operating system. Moreover, Google is a significant purchaser of Samsung’s memory chips and a customer of its foundry business. The potential switch to Bing was reportedly considered in light of Bing’s improvements after adopting OpenAI’s ChatGPT, a deal said to be worth $3 billion annually.
As Google is the default search engine on Samsung, Apple (NASDAQ:AAPL), and its own devices, these contracts represent a key focus for Google and its competitors, especially Microsoft. It has been reported that Microsoft, aiming to boost its market share in search, is keen on becoming the default search option in Mozilla’s Firefox browser when the existing contract with Google expires.
Overall, Wall Street rates all three stocks as Strong Buys, with analysts still expecting the most upside from Alphabet, despite the search engine drama. Indeed, the average price target for GOOGL is $129.86 per share, which implies over 5% upside potential.
