Apple Exec Warns AI Could Change the Future of Search and iPhones

On Wednesday, May 7, Apple’s senior vice president of services, Eddy Cue, shared his views on artificial intelligence and its potential to challenge Google’s grip on online search. Testifying in the U.S. court during the antitrust remedies case against Google, Cue said that while generative AI could disrupt Google’s dominance, today’s AI search tools still fall short in quality.

Cue confirmed that Apple is exploring integrating AI search into its Safari browser. His remarks followed earlier testimony he gave in 2023 during the Justice Department’s case against Google’s search monopoly. He also defended Apple’s agreement with Google, which involves Google paying Apple around $20 billion annually to remain the default search engine in Safari.

The U.S. District Court of Columbia, New York, previously ruled that such arrangements helped Google monopolize the search market unfairly. The same court is now weighing what actions Google should take to fix its anti-competitive behaviour and whether damages should be paid.

In response, Google offered more leeway to browser makers like Apple, suggesting it would permit deals with other search engines, including private browsing modes. Cue said that AI could open new doors for competitors and transform the tech industry.

A warning about the iPhone’s Longevity

Cue issued an ominous forecast about the future of the iPhone. “Incumbents have a hard time … we’re not an oil company, we’re not toothpaste — these are things that are going to last forever … you may not need an iPhone 10 years from now,” he said. Cue likened the possible end of the iPhone to Apple’s decision to stop selling the iPod—a move he described as akin to ending a “golden goose.” Currently, over half of Apple’s revenue comes from iPhone sales.

AI: A Force of Change

Cue emphasized AI’s potential to topple even the most powerful tech firms. He noted that companies once considered giants—like HP and Sun Microsystems—are now shadows of their former selves. “When I got to Silicon Valley, all of the best companies… don’t exist today or are significantly smaller,” he said.

He believes that although AI upstarts are not yet strong enough to substitute Google’s core search functions, they do offer a fresh and innovative approach. Many current tools lack a robust search index, but Cue acknowledged that combining LLMs with search features could soon change that.

Defending the Apple-Google Deal

Cue argued that swift AI developments reduce the antitrust threat. Despite a drop in Safari search usage, partly due to AI chatbot popularity, he said, “It seems crazy to me” that Apple could lose money while Google is penalized.

Though he admitted that Apple was disincentivised from creating its search engine due to the Google deal, he added: “We can’t do everything.”