Alphabet shares tumbled as much as 4% when trading began in New York. If the losses continue, it will be the greatest decrease since early February. Microsoft gained 1.7%

Following a report that Samsung is considering replacing Google with Microsoft's Bing as the default search engine on its smartphones, Alphabet was on track for its largest single-day drop in more than two months.

The New York Times reported on Sunday that Google employees were astonished when they learned of Samsung's threat in March, citing internal correspondence.

According to the Times, the deal between Alphabet and the world's biggest smartphone manufacturer is being negotiated, and Samsung may yet choose Google.

Alphabet shares tumbled as much as 4% when trading began in New York. If the losses continue, it will be the greatest decrease since early February. Microsoft gained 1.7%.

With the inclusion of OpenAI's technology to give ChatGPT-like replies to user inquiries, Bing's threat to Google's search supremacy has grown in recent months.

To prevent losing momentum, Google is working on many projects to refresh and revitalise its search offerings. These include incorporating artificial intelligence characteristics into its existing products through a project called Magi, which has more than 160 employees working on it, according to the Times.

According to IDC estimates, Samsung will ship 261 million smartphones in 2022, all of which will run Google's Android operating system.

The Korean firm has had long relationships with both Google and Microsoft, and its devices come preinstalled with a library of apps and services from each, which include OneDrive and Google Maps.

Google has a dominant market position in mobile devices in the US and much of the rest of the globe, thanks to its Samsung pact and one with Apple, which the Times reports is valued at approximately $20 billion in yearly income.

(bloomberg.com, newyorktimes.com)