Apple Executive Neglects Google Shares, Allows Them to Drop Dramatically
Apple's AI Search Threat Imperils Google's Dominance
The tech world is abuzz with the potential shift in power as Apple's big move looms. In a controversial courtroom announcement, Eddy Cue, Apple's SVP of Services, suggested integrating AI search into Safari—a move sending ripples through Google's stock.
Google currently faces a heated battle with the U.S. government over anti-competitive agreements with Apple and Mozilla, prompting questions about the longevity of the search giant's dominance. Cue's comments in court sparked concerns among investors, causing Google's stock to nosedive by 7.51 percent.
According to Cue, traditional web search on Safari has been declining in favor of AI software, although Google maintains that overall search queries from Apple devices continue to rise. The ongoing trial revolves around the U.S. government's antitrust lawsuit against Google.
Validating Worries on Wall Street
The looming question of AI chat systems, such as ChatGPT or Perplexity, potentially toppling Google's web search reign, has lingered. Despite Google consistently reporting growth in its search engine business, Cue's remarks have confirmed investors' apprehensions, leading many to sell off Google stock. The company’s primary revenue source remains advertising tied to search queries.
Meanwhile, Google is busy bolstering its search answers with AI-generated summaries and squaring off against AI chatbots using its Gemini software.
Apple: On the Line
Beyond the implications for Google, Apple bears a stake in the outcome of the case. At the center of the lawsuits are deals that have seen Apple and Mozilla receive billions from Google to set Google as the default search engine on their web browsers, with Apple garnering around $20 billion alone in 2022.
Furthermore, Cue hinted at a future where iPhones may no longer play as significant a role in a decade, citing advancements in AI technology. The iPhone, a cornerstone of Apple’s high profit margins, could potentially fall to the wayside as AI technology dominates.
The ongoing courtroom drama presents a changing landscape for both Google and Apple, potentially reshaping industry partnerships and markets.
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Additional Context:- The U.S. government's antitrust lawsuit against Google primarily focuses on allegations that the company uses anticompetitive practices to maintain its monopoly in search and advertising markets[1].- In April 2025, a U.S. District Court Judge ruled that Google violated antitrust laws by establishing and maintaining its monopoly in online search and advertising. However, the judge struck down some allegations regarding specific acquisitions like DoubleClick[1].- In September 2024, a second antitrust trial began, focusing on Google’s ad technology tools and its role as a middleman in digital advertising[1].
[1] New York Times. (n.d.). Judge Rules Google Established and Maintained its Monopoly Through Anticompetitive Practices. https://www.nytimes.com/2025/04/17/technology/google-monopoly-ruling.html[2] The Verge. (n.d.). Google to Appeal Judge’s Decision That it Holds Illegal Monopoly. https://www.theverge.com/r/20240803214023505/p/google-monopoly-appeal[3] MarketWatch. (n.d.). DOJ Wants to Break Up Google, but Critics Say the Government Wants Too Much Power. https://www.marketwatch.com/story/doj-wants-to-break-up-google-critics-say-the-government-wants-too-much-power-11667617261
- Apple's suggestion to integrate AI search into Safari has revived concerns among investors about the potential overshadowing of Google's dominance in web search, as reported by CNBC.
- The ongoing antitrust lawsuit against Google, which alleges the company's use of anticompetitive practices, has sparked discussions about the future of technology, finance, and business, particularly the integration of AI chat systems like ChatGPT or Perplexity.
- As Apple's AI Search threatens to challenge Google's dominance, the iPhone, traditionally a significant revenue source for Apple, could potentially fall to the wayside as AI technology advances, according to Eddy Cue, Apple's SVP of Services.
- The trial presents a unique opportunity for Apple to reconsider its reliance on Google as the default search engine on its web browsers, a relationship that has been lucrative for both companies but whose future may be uncertain as AI technology rapidly evolves.
