Apple Executive’s Testimony Triggers Sharp Drop in Alphabet Stock
A top executive from Apple has sent Alphabet’s stock into a steep decline with just a few courtroom remarks. Shares of Google’s parent company plunged by around eight percent following comments from Eddy Cue, Apple’s Senior Vice President of Services, during a U.S. antitrust trial against Google.
Cue stated that Apple plans to integrate a new AI-powered search tool alongside Google Search in its Safari web browser. His remarks suggested a potential shift in Apple’s long-standing reliance on Google as the default search engine on its devices—a partnership that brings Google billions in advertising revenue.
Drop in Traditional Web Searches Cited
Cue also revealed that April saw a notable decline in traditional web searches conducted through Safari. He attributed this drop to users increasingly turning to AI-based tools for information, instead of typing queries into a standard search engine. Bloomberg reported on Cue’s testimony, noting that the trial centers around whether Google’s dominance in search violates U.S. antitrust laws.
For some time now, investors and analysts have speculated whether AI chatbots like ChatGPT and Perplexity might eventually challenge Google’s dominance in web search. While Google has consistently reported quarterly growth in its search engine business, Cue’s courtroom statement seemed to validate investor concerns, prompting many to sell off Alphabet stock.
Despite the turbulence, search-related advertising remains Alphabet’s primary revenue driver. The fear is that if more users opt for AI-generated responses over traditional web search, Google’s core business could be at risk.
Google Responds with Its Own AI Push
In response to the growing influence of AI in search, Google has been developing its own solutions. The company is already integrating AI-generated summaries into search results and is promoting its Gemini software—a direct competitor to ChatGPT and other advanced AI chatbots.
A Bold Prediction for the iPhone’s Future
Cue’s remarks had another unexpected twist that was largely overshadowed by the stock drop. According to Bloomberg, Cue speculated that, “as crazy as it sounds,” there might not be a need for iPhones in ten years. He pointed to the rapid evolution of AI technologies as a potential game-changer in how people interact with digital services.
This statement, while theoretical, is significant coming from an executive at Apple—the iPhone being the company’s most profitable and iconic product. Cue’s suggestion hints at a possible future where AI tools reduce or eliminate the need for smartphones as we know them today.
Market Reacts to Shifting Tech Landscape
The courtroom revelations underscored just how sensitive investors are to any signs of disruption in the digital advertising and mobile ecosystems. As AI continues to reshape user behavior, tech giants like Google and Apple are navigating uncharted territory. For Alphabet, Cue’s testimony served as a stark reminder of the risks looming on the horizon.
