Apple Executive Reveals Decline in Google Search Traffic on Safari

WASHINGTON, D.C. — Google may be facing a challenge unlike any in the past two decades. Eddie Cue, Apple’s senior vice president of services, testified Wednesday that Google searches on the Safari web browser have decreased over the last two months. ‘That has not happened in over 20 years,’ Cue stated in the ongoing Justice Department antitrust trial against Google.

During his testimony, Cue pointed to a growing trend of consumers turning to generative AI services such as ChatGPT and Perplexity as alternatives for online searches. This revelation had immediate financial consequences, causing Alphabet, Google’s parent company, to see its share price drop by more than 7%. This decline amounted to roughly $250 billion in market capitalization.

The implications of Cue’s statement are particularly significant for Apple, which has a lucrative arrangement with Google that earns over $20 billion annually. Following Cue’s comments, Apple’s stock also fell more than 1% by the end of trading.

The situation adds to the turmoil surrounding Google, which has been embroiled in multiple federal antitrust lawsuits in recent months. These legal challenges argue that Google has an overwhelming monopoly over the internet search market, which hinders competitors like Microsoft from entering the field successfully. Recent data indicates that Google accounted for approximately 89.7% of global internet searches last month, while Microsoft’s Bing captured only about 3.9%.

Despite these challenges, Google remains a dominant force in search-related revenues. Analysts stress that the shift in consumer behavior observed by Cue reinforces the growing importance of AI-driven search technologies. Gene Munster, Managing Partner at Deepwater Asset Management, noted that ‘search is shifting away from the traditional blue-link results page’ towards AI-driven solutions.

In response to the evolving landscape, Google is focusing on integrating AI into its search capabilities. The company prepares to launch an AI feature, Gemini, which is intended to enhance its search engine’s performance. Bank of America analysts believe Google still possesses significant data and distribution advantages, although the pressure from AI competitors is intensifying.

As the legal battle and market dynamics unfold, the potential for further shifts in search consumer preferences looms. Both investors and analysts will be closely monitoring how Google adapts to these emerging challenges in technology and competition for market dominance.