“The iPhone as we know it may become obsolete,” warns Apple exec, as AI shakes the foundations of search

At a dramatic moment during a key antitrust trial in Washington, D.C., Apple’s Senior Vice President of Services, Eddy Cue, made a statement that may mark the beginning of the end for the iPhone’s traditional role in web search. “For the first time in 22 years, we’ve seen search volume drop on Safari,” he said. Cue’s testimony, intended to defend Apple’s multi-billion-dollar deal with Google, also hinted at a deeper shift that could reshape how users interact with the iPhone itself. The driving force behind this disruption is AI.

Apple is reportedly planning to integrate generative AI-based search tools like OpenAI and Perplexity into Safari. This could significantly change the way iPhone users search for information, moving away from the traditional Google search box to AI-driven interfaces. This broader trend has already affected the market, with shares of Google parent Alphabet dropping by over 7% this week and erasing approximately $150 billion in market value.

“It just seems crazy to me,” Cue said in court, referring to potential revenue losses tied to Google’s antitrust issues, while acknowledging that the bigger disruption may not come from legal rulings but from AI.

Cue’s remarks reflect growing industry sentiment. Google’s long-standing dominance in search is under threat from generative AI platforms. With ChatGPT now reportedly handling over 1 billion weekly search queries and Apple said to be redesigning Safari around AI tools, the iPhone may no longer act as the central gateway to Google’s ecosystem.

“The iPhone’s role as the portal to search is being redefined,” said Yory Wurmser, an analyst at eMarketer. “When your default gateway no longer leads to Google but to AI, the device becomes less of a command centre and more of a conduit.”

This strategic pivot by Apple could have far-reaching consequences across the smartphone and advertising industries. Analysts warn that removing Google’s default search position on iOS might destabilize Google's ad business and redirect billions in global ad spending. As U.S. regulators continue to weigh action against default search engine deals, Apple seems to be preparing its platform for an AI-first future.

For now, the iPhone remains dominant. But as Cue suggested, the rise of AI may do what courts alone cannot — weaken Google’s search monopoly and, in the process, redefine the iPhone itself.