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| Logos of Google and Apple, whose multibillion-dollar search partnership is under scrutiny in a US antitrust trial. |
In a surprising turn during the US Justice Department’s antitrust trial against Google, Apple made a bold argument that could reshape one of the tech industry's most lucrative partnerships. Eddy Cue, Apple’s senior vice president of services, claimed that the $20 billion-a-year deal with Google to make its search engine the default on Apple devices might not be essential in the long run. Even more strikingly, he suggested that the iPhone itself may become obsolete in the next decade.
Cue's testimony revealed that Apple is already laying the groundwork for a future centered on artificial intelligence. The company plans to revamp its Safari web browser to integrate AI-driven tools such as ChatGPT, Claude, and Perplexity — a shift that could disrupt how users access information and move away from traditional search engines like Google.
Apple’s data shows the tide may already be turning. Google search queries on Apple devices dropped in April, marking the first recorded decline, driven by a growing preference for AI-based tools. Cue suggested that AI systems will eventually become selectable search options within Safari, further weakening Google's dominance.
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| Apple CEO Tim Cook, whose company is reevaluating its reliance on Google as default search provider amid antitrust scrutiny. |
Despite painting a picture of an evolving tech landscape, Cue acknowledged that losing the Google deal would hurt. It remains a major source of revenue for Apple’s growing services division, which pulled in a record $26.6 billion last quarter. But with regulatory pressure mounting and AI opening new monetization paths, Apple may be preparing for a world where it takes a cut from multiple AI providers instead of relying heavily on one dominant partner.
Investors are watching closely. Shares of Alphabet fell 7.3% following the revelations, while Apple’s dipped 1.1%. Both companies stand to lose if the court rules against the deal, but Apple’s courtroom strategy signals it's ready to pivot — with or without Google.