👉 Background: For decades, Google has dominated the search market with more than 80% market share. And much of their search traffic has come from some pretty nifty deals that they'd previously struck with Samsung and Apple.

👉 What happened: Now, Samsung is considering replacing Google Search with Microsoft’s Bing as the default search engine on its devices. Here's why this is nervous times for the Big G:

• There are more than 1 billion Samsung phones globally
• Google earns an estimated $3 billion in annual revenue from the Samsung contract.
• Google earns an estimated $20 billion in annual revenue from Apple - and this deal is up for renewal later this year too.

👉 What else: Alphabet, Google’s parent company, saw its shares drop almost 3% after investors panicked on this news that Google has failed to innovate fast enough.

What's the key learning?

💡The innovator's dilemma is a theory that explains how successful companies can fail to adapt to new technologies or innovations.

💡Google has been an incredibly innovative company since its inception. But when it comes to Google Search, it hasn’t made many significant changes to the basic search algorithm. It preferred to focus on innovating around the edges of the search experience.

💡 This has left a blank canvas for other companies, like Microsoft and Open AI to totally re-think the search experience. And now, AI competitors like the new Bing are becoming the most serious threat to Google’s search business in 25 years.