You are assuming this would be operated at a loss. Apple could sell their own advertising. Or if it's good enough, just use it to make the iPhone experience bet

You are assuming this would be operated at a loss. Apple could sell their own advertising. Or if it's good enough, just use it to make the iPhone experience better. Ad free search would be a pretty nice feature if results are top Q. Also assumes the DOJ/ court systems/ legislation isn't going to block this kind of deal regardless. (The press has been talking about an Apple search engine on and off for 5 years so I'm skeptical).