Assess the Case for Apple Entering the Web Search Market

Quick Overview

A product strategy question on whether Apple should enter web search with an engine of its own. It tests market analysis, the economics of Apple's existing search arrangement, Apple's strengths and gaps, comparison of strategic options, and a clear recommendation with risks and the conditions that would change it.

Assess the Case for Apple Entering the Web Search Market

Company: Apple

Role: Product Manager

Category: Product Design & Strategy

Difficulty: medium

Interview Round: Other

Should Apple build a search engine of its own and launch it? Give a recommendation and walk through the reasoning behind it. Treat it as a strategy decision: what Apple stands to gain, what it would risk or give up, and which options lie between a full launch and doing nothing. ```hint Know the baseline Begin with how searches typed on Apple's devices are handled today and what that arrangement earns Apple. Any plan to launch has to beat that baseline, not zero. ``` ### Clarifying Questions - Does "search engine" mean a full web index meant to compete with Google and Bing as the Safari default, or could a narrower effort count, such as search across Apple's own apps, services and devices? - Would it serve only Apple devices, or also people on other devices and browsers through the web? - What is Apple optimizing for: new revenue, less dependence on a rival, privacy differentiation or better answers for Siri? Or is that mine to choose? - Over what horizon should the recommendation hold: the next year or the next five? ### What a Strong Answer Covers - Apple's goals and current position in search, including the economics of the existing default-search arrangement and what a launch would put at risk. - The market: incumbents, the cost of building and running a competitive index and ad business, and how AI-generated answers are changing search. - Apple's assets and gaps: its installed base, Safari and Siri as distribution, its privacy brand and its record launching services against entrenched rivals, set against limited experience in web-scale search and ads. - Options between a full launch and the status quo, compared on explicit criteria. - A clear recommendation with the conditions and signals that would change it. ### Follow-up Questions - How would your recommendation change if regulators barred Google from paying to be the default search engine? - If Apple built search, how could it earn money without contradicting its privacy positioning? - Two years after starting, how would you judge whether Apple's search effort is working?

Overview: A product strategy question on whether Apple should enter web search with an engine of its own. It tests market analysis, the economics of Apple's existing search arrangement, Apple's strengths and gaps, comparison of strategic options, and a clear recommendation with risks and the conditions that would change it.

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Apple
Jul 6, 2024
mediumProduct ManagerOtherProduct Design & Strategy
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Should Apple build a search engine of its own and launch it? Give a recommendation and walk through the reasoning behind it. Treat it as a strategy decision: what Apple stands to gain, what it would risk or give up, and which options lie between a full launch and doing nothing.

Clarifying Questions Guidance

  • Does "search engine" mean a full web index meant to compete with Google and Bing as the Safari default, or could a narrower effort count, such as search across Apple's own apps, services and devices?
  • Would it serve only Apple devices, or also people on other devices and browsers through the web?
  • What is Apple optimizing for: new revenue, less dependence on a rival, privacy differentiation or better answers for Siri? Or is that mine to choose?
  • Over what horizon should the recommendation hold: the next year or the next five?

What a Strong Answer Covers Guidance

  • Apple's goals and current position in search, including the economics of the existing default-search arrangement and what a launch would put at risk.
  • The market: incumbents, the cost of building and running a competitive index and ad business, and how AI-generated answers are changing search.
  • Apple's assets and gaps: its installed base, Safari and Siri as distribution, its privacy brand and its record launching services against entrenched rivals, set against limited experience in web-scale search and ads.
  • Options between a full launch and the status quo, compared on explicit criteria.
  • A clear recommendation with the conditions and signals that would change it.

Follow-up Questions Guidance

  • How would your recommendation change if regulators barred Google from paying to be the default search engine?
  • If Apple built search, how could it earn money without contradicting its privacy positioning?
  • Two years after starting, how would you judge whether Apple's search effort is working?