The Google Compromise: When Apple Settled for Second Choice

Apple didn’t choose Google — Apple settled for Google after being priced out of its preferred option.

The Deal

The Uncomfortable Reality

This is NOT choosing between excellent options.

This IS taking what it can get.

“Siri and today’s Apple Intelligence are at least two generations behind. Maybe worse.”

— John Gruber

Trading One Google Dependency for Another

Double Dependency: Search revenue + AI costs both flow to Google

The Bake-Off Context

• Google started training custom models for Apple’s servers
• Competed in head-to-head testing
• Offered acceptable (not aggressive) pricing
• Won by being available at the right price

Claude won, but Anthropic priced out. Gemini was the fallback.

What This Means for Apple

• 2x Double Dependency on single competitor
• -5% Revenue hit from Safari fee reduction
• No Differentiation — Same AI as Android

This is part of a comprehensive analysis. Read the full analysis on The Business Engineer.