Could artificial intelligence (AI) dethrone Google’s search empire and make the iPhone a relic of the past? That’s the provocative vision painted by Eddy Cue, Apple’s senior vice president of services, during his testimony on May 7, 2025, in the U.S. Department of Justice’s (DOJ) antitrust remedies trial against Google. Cue’s bold statements—suggesting AI-powered search could disrupt Google’s monopoly and that we “may not need an iPhone 10 years from now”—sent Alphabet’s stock plummeting over 8%, erasing $150 billion in market value. His words have ignited a firestorm of debate about the future of search, smartphones, and the tech industry at large. In this deep dive, we explore the key highlights of Cue’s testimony, unpack its implications for Apple, Google, and users, and consider what a world shaped by AI might look like.
The Google Antitrust Trial: Setting the Stage
The trial, ongoing since September 2023, centers on Google’s dominance in the search engine market, which commands nearly 90% of global searches. The DOJ argues that Google’s exclusive deals, including a $20 billion annual payment to Apple to be Safari’s default search engine, have stifled competition and maintained an illegal monopoly. A U.S. district court in Columbia, New York, ruled in 2024 that these agreements violate antitrust laws, and the current remedies phase is determining how to make the market more competitive.
Eddy Cue’s testimony is pivotal because Apple’s partnership with Google is a cornerstone of the case. The $20 billion deal, in place since 2002, ensures Google’s search engine is the first choice for millions of iPhone, iPad, and Mac users, generating significant ad revenue for Google and a steady income stream for Apple. The DOJ seeks to curb such deals, potentially forcing Google to share data or divest assets like Chrome, while Google proposes more flexible agreements, such as allowing Apple to sign additional default search deals.
Key Highlights from Eddy Cue’s Testimony
Cue’s testimony on May 7, 2025, offered a rare glimpse into Apple’s perspective on search, AI, and the future of its flagship product. Here are the main takeaways:
| Topic | Key Statement | Implication |
|---|---|---|
| AI’s Threat to Google | AI search tools could disrupt Google’s monopoly, though they’re not yet competitive. | Signals a shift toward AI-driven search, challenging Google’s dominance. |
| iPhone’s Future | “You may not need an iPhone 10 years from now” due to AI-driven shifts. | Suggests Apple is preparing for a post-smartphone era. |
| Google-Apple Deal | Google is the best search engine; Apple has no incentive to build its own. | Defends the $20B deal but acknowledges its role in limiting competition. |
| Safari’s AI Plans | Apple is exploring AI search options from OpenAI, Perplexity, and Anthropic. | Could diversify search options, enhancing user choice. |
AI as a Game-Changer for Search
Cue emphasized that while traditional search engines like Microsoft’s Bing or DuckDuckGo haven’t dented Google’s dominance, AI-powered tools pose a serious threat. He noted that large language model (LLM)-based search providers, such as OpenAI’s ChatGPT and Perplexity, are tackling search differently, offering conversational, context-aware answers. However, he cautioned that these tools lack the robust search indexes needed to fully replace Google, though combining LLMs with smaller indexes could soon make them viable competitors.
Apple’s interest in integrating AI search into Safari is a significant development. Cue revealed plans to potentially include providers like OpenAI, Perplexity, and Anthropic, which could give users alternatives to Google directly within the browser. This move aligns with Apple’s broader “Apple Intelligence” initiative, which already incorporates ChatGPT into Siri for enhanced functionality.
The iPhone’s Uncertain Future
Perhaps the most headline-grabbing moment was Cue’s prediction that “you may not need an iPhone 10 years from now.” He compared this potential shift to Apple’s bold decision to discontinue the iPod, a once-dominant product that was eclipsed by the iPhone. Cue’s comment reflects the rapid pace of technological change, suggesting AI could lead to new devices or interaction methods—possibly augmented reality (AR) glasses or ambient computing—that might supplant smartphones.
This statement is particularly striking given that iPhones account for over half of Apple’s revenue. Cue’s willingness to entertain such a future shows Apple’s readiness to adapt, even if it means moving beyond its most iconic product.
Defending the Google Partnership
Despite his forward-looking comments on AI, Cue staunchly defended Apple’s $20 billion deal with Google. He argued that Google remains the best search engine available, and users can easily switch to alternatives if they prefer. However, he conceded that the deal may have disincentivized Apple from developing its own search engine, aligning with the court’s finding that such agreements limit competition.
Cue also noted a historic decline in Safari search volume in April 2025—the first in 22 years—attributing it to users turning to AI chatbots for information. This trend underscores the growing appeal of AI-driven search and adds pressure on Google to innovate.
Market Shock: Alphabet’s $150 Billion Loss
Cue’s testimony sent ripples through the financial markets. Alphabet’s stock plummeted over 8% on May 7, 2025, wiping out approximately $150 billion in market value. Investors reacted to the prospect of AI eroding Google’s search dominance, particularly if Apple diversifies its search partnerships. The sharp decline highlights the high stakes of the trial and the market’s sensitivity to shifts in the tech landscape.
Apple’s stock also dipped by 1.1%, reflecting uncertainty about the financial impact of potentially altering its lucrative Google deal. The market reaction underscores the intertwined fates of these tech giants and the transformative potential of AI.
AI Search: A New Paradigm
To understand why AI search is such a threat, it’s worth exploring how it differs from traditional search. Google’s model relies on crawling the web, indexing content, and ranking pages based on relevance. AI search, powered by LLMs, generates direct answers, often synthesizing information without linking to specific sites. For example, asking “What’s the best Italian restaurant in Manhattan open late?” might yield a concise list with reviews, rather than a page of links.
These tools excel at understanding context, allowing follow-up questions without repeating details. However, challenges like accuracy (“hallucinations”) and bias remain, as Cue noted, limiting their ability to fully replace Google for now.
Implications for Users, Businesses, and the Tech Industry
For Users
Apple’s potential integration of AI search into Safari could transform how you browse the web. Instead of sifting through links, you might get instant, conversational answers, making searches faster and more intuitive. This could be especially helpful for complex queries or users with limited digital literacy. However, you’ll need to stay vigilant about AI’s accuracy and privacy implications, as data handling by third-party providers raises concerns.
For Businesses
Businesses relying on Google Ads face uncertainty. If AI search gains traction, ad revenue could shift to new platforms offering sponsored answers or contextual placements. For example, a restaurant might advertise on Perplexity to appear in AI-generated recommendations. Companies will need to adapt by optimizing for conversational queries, a shift from traditional SEO strategies.
For the Tech Industry
Cue’s testimony highlights AI’s broader impact. Beyond search, AI could revolutionize advertising, content creation, and customer service. Google is already countering with AI features like Bard and AI Overviews, but its reliance on the Safari deal remains a vulnerability. Apple’s pivot toward AI suggests a future where new devices—possibly AR headsets or ambient computing solutions—replace smartphones, challenging the status quo.
For more on AI trends, check our post on Top AI Innovations for 2025.
Conclusion: A Turning Point for Tech
Eddy Cue’s testimony has thrust AI into the spotlight, signaling a future where search and smartphones could look radically different. His vision of AI disrupting Google’s monopoly and potentially ending the iPhone era challenges us to rethink how we interact with technology. While Google remains the search leader, the rise of AI tools and Apple’s strategic shift suggest a more competitive, innovative landscape ahead. As the trial unfolds, its outcomes could reshape the tech industry for years to come. What do you think about AI’s role in our digital future? Share your thoughts below!
