Apple exec testifies AI may replace iPhones in 10 years in Google search monopoly trial

WASHINGTON (CN) — A top Apple executive said Wednesday that artificial intelligence could replace the need for iPhones within the next decade, while taking the stand in the landmark antitrust trial over Google’s internet search monopoly.

Eddy Cue, Apple’s senior vice president of services, explained that he thought AI had the potential to completely reshape the tech industry and require companies to make bold moves, like Apple did when it killed the iPod.

“Incumbents have a hard time,” Cue said. “We’re not an oil company, we’re not toothpaste — those are things that are going to last forever. You may not need an iPhone 10 years from now.”

Cue took the stand during the last three days of the trial’s remedy phase, where U.S. District Judge Amit Mehta is weighing the Justice Department’s and Google’s proposals to make the internet search market competitive again. He is expected to issue his ruling in August.

The Justice Department has proposed a major breakup of Google, including the divestiture of its Chrome browser and potentially Android, in addition to the release of Google’s search data and search index to help rival search engines catch up to Google’s ill-gotten quality.

Meanwhile, Google has urged Mehta to craft a narrow remedy to restore competition to the internet search market, primarily by opening its multibillion-dollar default deals to rival bidding on a yearly basis. In that case, device manufacturers could have different defaults on phones, tablets and computers.

The tech giant has indicated it will appeal Mehta’s ultimate decision in August, setting up a lengthy appeals battle.

Cue, who previously testified during the liability phase of the trial, said that AI is a “huge technological shift” and would likely upend the current hierarchy among tech companies, even those that seem untouchable.

“When I got to Silicon Valley, all the best company or the most successful companies either don’t exist today or are significantly smaller and much less impactful,” Cue said, highlighting HP, Sun Microsystems and Intel.

AI has become a sticking point in the remedy phase of the antitrust trial, as the technology has significantly developed since Mehta ruled that Google operated an illegal monopoly on Aug. 5, 2024.

In October, the Justice Department asked Mehta to order Google turn over documents related to its Gemini AI product and expressed concern that the new technology would allow the tech giant to circumvent any ultimate remedies.

Witness testimony has also heavily featured AI, with testimony from top executives from Perplexity and OpenAI.

ChatGPT head Nick Turley testified that parent company OpenAI would purchase Google’s Chrome browser if Mehta ordered its divestiture as a remedy.

Cue also said that Apple is planning on adding AI search features into its Safari browser, once the technology develops further.

The company currently has a deal with OpenAI to integrate ChatGPT with Siri, and Google CEO Sundar Pichai testified last week that Google was working on a deal to bring its Gemini AI product to iPhones.

“To date, they’re just not good enough,” Cue said, referring to the current state of AI search features.

He added that Google searches on Safari had dropped for the time ever last month, pointing to the growing use of AI products like ChatGPT, Perplexity, Gemini and Microsoft AI as a search engine.

“That has never happened in 22 years,” Cue said.

Google pays Apple approximately $20 billion to make its search engine the default option on Safari, but could reevaluate the need for such a hefty sum as users begin turning to AI.

“I’ve lost sleep thinking about it,” Cue said.

He noted that Apple has a deal with Microsoft to make Bing an option that users can select as their default search engine, but added that Apple is hesitant to make it the out-of-the-box default without significant quality improvements.

Cue also testified that Apple likely would not enter the search market itself without the revenue-sharing agreements with Google, as the company is “happy to partner” in certain areas that Apple has little expertise.

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