Apple's services revenue trajectory more uncertain than ever
- During a 2025 U.S. Antitrust trial, Eddy Cue, Apple's executive overseeing services, disclosed that the company is considering adding an AI-driven search engine to Safari.
- This move follows a decline in Google searches on Apple devices amid regulatory actions against Alphabet and growing user interest in conversational AI alternatives.
- Cue indicated Safari may replace Google with AI services from OpenAI, Anthropic, and Perplexity as user behavior shifts towards conversational interfaces over traditional search.
- Apple earns about $20 billion annually from Google’s search deal, yet Cue said losing it causes him "sleepless nights," while Morgan Stanley flags risks to services revenue growth.
- The situation signals uncertainty for Apple’s services revenue, depending on retaining Google or successfully monetizing AI search amid evolving search market dynamics.
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Google AI-ngst: Apple Deal May Disintegrate Even Without Court Intervention
Photo by Arkan Perdana via UnsplashThis story was originally published on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter.Apple SVP of Services Eddy Cue said last week that AI will one day replace search engines like Google. His statement, made during the penalty phase of the antitrust trial against Google-parent Alphabet…
AI Threatens To Disrupt Search Giants, Nvidia Rival AMD's Market Position Strongest Ever And More: This Week In Artificial Intelligence - Apple (NASDAQ:AAPL), Advanced Micro Devices (NASDAQ:AMD)
As the weekend wraps up, we reflect on a week filled with intriguing developments in the tech and finance world. From the potential disruption of search engine giants to the call for AI education by leading CEOs, the week was anything but dull. Let's dive into the top stories that made headlines.
War in the tech industry: "The giants fight"
Google may be losing its place at the top of the tech pyramid. For the first time in 22 years, Google's search traffic on Apple devices is decreasing. - Before, people googled, now they ask Chat GPT, says Peter Mackhé, media expert at Sweden's advertisers.
Apple Exec Urges Judge: AI is the New Rival to Google Search
read the original version on: www.www.retailnews.asia Apple could be staring down the barrel of a significant income loss as its lucrative $20 billion annual deal with Google faces potential termination by the Department of Justice (DOJ). This substantial sum is paid to Apple for designating Google as the default search engine across its devices. The fact that Google can afford to […] The post Apple Exec Urges Judge: AI is the New Rival to Googl…
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