Apple does certain things well but the kind of area that a quality search engine falls in kind of feels out of their capabilities. They've struggled to get Maps to be useable and Siri is pretty bad despite being the first virtual assistant.
Currently yes. However if they spent the whole $14 billion a year it wouldn't take long for apple to pull it off. I dont know what google spends on their search algorithm, but it cant be orders of magnitude more than $14 billion annually.