Key Point 1:
Apple executives confirm the addition of AI search options in the Safari browser for iPhone, iPad, and Mac.
Key Point 2:
Key factors prompting this move include a decline in Safari search volume for the first time since the launch of the first-generation iPhone, as well as the looming threat of termination of the high-value default search agreement with Google.
Key Point 3:
Apple anticipates that AI search will become the mainstream method for accessing online information, planning to integrate diverse AI providers into Safari and evaluate the establishment of new revenue-sharing models.
Apple Safari to Introduce AI Search
Apple is actively considering integrating AI (artificial intelligence) search engines into its Safari web browser, a significant potential shift influenced in part by the possible termination of its long-term partnership with Google’s parent company, Alphabet.
Eddy Cue, Apple’s Senior Vice President of Services, disclosed this information while testifying in the U.S. Department of Justice’s lawsuit against Alphabet. At the heart of this case is a deal estimated to be worth $20 billion annually (approximately NT$605.3 billion), which makes Google the default search engine on Safari for Apple devices.
Following the announcement, Alphabet’s stock price fell 7.3% on Wednesday (U.S. time), marking its largest drop since February; Apple’s stock also declined by 1.1% due to Cue’s comments. In short, this lawsuit could force these two tech giants to sever their collaboration, disrupting the operational model that has long existed for devices like the iPhone.
Rise of AI Search! Apple Plans to Introduce Third-Party Providers like ChatGPT and Perplexity
During his testimony, Cue noted that AI has become popular among users and that Safari experienced a decline in search volume last month, attributing this to people turning to AI services. Cue believes that AI search providers, including OpenAI, Perplexity AI Inc., and Anthropic PBC, will ultimately replace standard search engines like Google under Alphabet Inc.
He stated that Apple plans to add these AI options to Safari’s list in the future, although “they may not be the default option,” as he believes they still need improvement. Cue confirmed that the company has had discussions with Perplexity AI. He remarked, “Before AI came along, I don’t think there were any effective alternatives. I believe there’s greater potential today because new participants are solving problems differently.”
Cue emphasized that technological changes happen rapidly, and in a few years, people may not be using the same devices anymore. He said, “While it sounds crazy, you might not need an iPhone in ten years.” The only way to compete is through technological transformation, and AI represents a new technological shift that is creating new opportunities for newcomers.
Apple Executive: The Shift to AI Search is Inevitable
Apple currently offers the OpenAI ChatGPT option in its Siri digital assistant and expects to add Google’s AI search product Gemini later this year. Cue pointed out that Apple has also considered Claude from Anthropic, DeepSeek from China, and Grok from Elon Musk’s xAI.
He stated that before ChatGPT was chosen as part of Apple Intelligence in iOS 18 last year, there was a “showdown” with Google. He mentioned that the list of terms provided by Google contained “a lot of things that Apple would not agree to, and there was no consensus with OpenAI.”
In other words, Apple evaluated Google’s proposal before deciding to integrate ChatGPT into the Apple Intelligence feature in iOS 18. However, the cooperation terms proposed by Google included many points that Apple could not accept, which were also absent from the agreement signed with OpenAI.
Cue believes that AI participants need to improve their search indexing, but even if improvements are slow, they still have many “far better features that will attract people.” He is confident that with sufficient funding and investment from major players, this shift is inevitable.
If the Google Default Search Engine Agreement Collapses, It Could Impact Apple’s Revenue
The trend of shifting from traditional search engines to AI search has significant implications for Apple, which has over 2 billion activated devices, including the iPhone. Since the launch of the first iPhone in 2007, users have been conducting web searches through Google.
In the future, consumers may enter a world dominated by AI from multiple companies. The collaboration agreement of approximately $20 billion annually between Google and Apple brings considerable revenue to Apple, primarily attributed to its services sector. During his testimony, Cue expressed concern about the potential loss of revenue sharing if this agreement were to be lost, believing that the current standard search agreement with Google still has the most favorable financial terms.
Cue oversees services such as iCloud, TV+, and Apple Music, and he is also a key dealmaker for the company. Any losses resulting from the collapse of the partnership would reflect in the financial performance of the departments he oversees.
As hardware sales slow, the services sector has been Apple’s primary revenue highlight in recent years, with the sector recording $26.6 billion (approximately NT$808.5 billion) in revenue for the quarter ending in March.
This article is a collaborative reprint from: Digital Age
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Source: Bloomberg, 9to5mac
This article was initially drafted by AI, organized and edited by Li Xiantai