Key Takeaways
- An Apple executive, Eddy Cue, stated that AI tools are reducing Google searches on the Safari browser.
- Google’s stock dropped significantly following Cue’s remarks but later recovered some ground.
- Google disputed Apple’s claim, saying its overall search queries, including those from Apple devices, are increasing.
- The discrepancy might be explained by a potential drop in Safari-specific searches while use of the Google app or Chrome on Apple devices grows.
- Cue’s comments were made during the US vs. Google antitrust trial, leading to speculation about Apple’s motives.
Google found itself in the spotlight after a top Apple executive, Eddy Cue, suggested that artificial intelligence tools are beginning to lure users away from Google Search on Apple’s Safari browser. This news initially sent Google’s stock tumbling by over 8%.
Google quickly responded, asserting that this wasn’t the full picture. The search giant stated it continues to see an increase in search volume, and that includes a rise in total queries coming from Apple’s devices and platforms.
This has led to a debate about what’s really happening. It’s possible both tech giants are, in a sense, correct. Observers noted Google’s statement emphasized “total” searches and mentioned “devices” and “platforms,” but conspicuously didn’t single out “Safari.”
This carefully chosen wording suggests that while searches directly within the Safari browser might indeed be declining for the first time, as Cue indicated, people could be using other avenues like the dedicated Google app or Google’s Chrome browser more frequently on their iPhones. This could offset any Safari-specific dip.
Even if users are shifting how they access Google on Apple products, Cue’s observation that Safari searches are down for the first time ever is a significant signal. It highlights that users are becoming more aware of alternative ways to find information, including AI engines like ChatGPT.
Investors reacted to the initial news with concern, though Google’s stock did climb back up a bit the following day. It still remained lower than before Cue’s testimony, indicating lingering uncertainty.
The timing and context of Cue’s statement are also drawing scrutiny. He made these remarks while testifying in the major US vs. Google antitrust trial, as reported by Business Insider. This has fueled speculation about Apple’s strategy.
Some analysts suggest Cue might have an incentive to portray Google as facing stronger competition. Google pays Apple a substantial sum, reportedly around $20 billion annually, to be the default search engine on Safari. A federal judge has already deemed Google’s search practices monopolistic.
If AI is perceived as genuine competition eroding Google’s dominance, it could make it less likely for a judge to interfere with those lucrative payments to Apple. This “4D chess” theory could also explain Google’s somewhat muted and carefully phrased response, aiming to project strength while acknowledging a competitive field.
So, the big question remains: Is Google’s long-standing search dominance genuinely under threat from the rise of AI, or is the company successfully navigating these new challenges? The tech world is watching closely for the answer.
