Google stock drops nearly 10% after Apple says it could ditch search engine as iPhone default

Shares of Google parent Alphabet Inc.tanked more than 7% on Wednesday after a senior Apple executive signaled that the iPhone maker was looking at search engine alternatives for its Safari web browser.Eddie Cue, Apple’s senior vice president of services, testified on Wednesday as part of the Justice Department’s antitrust lawsuit against Google that Apple was “actively looking at” AI-powered search engines which would replace Google as the default option on the iPhone and other devices.Alphabet shares were recently off more than 9%, or $15.25, at $149.95.Cue, who reports directly to CEO Tim Cook, testified in court on Wednesday that Apple has noticed a decrease in the number of searches that were conducted by Safari users — an increasing number of whom have migrated to AI, according to Bloomberg.Cue said he expects artificial intelligence-driven search platforms — such as OpenAI’s ChatGPT, Perplexity AI and Anthropic — to eventually supplant traditional search engines like Google.He added that Apple plans to integrate these emerging tools as search options within Safari down the line.“We’ll include them in the lineup — though they likely won’t be set as the default,” he said, noting that the services still need refinement.Cue confirmed that Apple has held preliminary talks with Perplexity.“Before AI came into play, I didn’t see any of the alternatives as serious contenders,” he said.“But I think the landscape is changing.

There’s now real potential thanks to new players approaching the challenge with fresh perspectives.”Apple currently integrates ChatGPT as a feature within Siri and is expected to introduce Google’s Gemini — its AI-powered search tool — sometime later this year.According to Cue, Apple also evaluated AI offerings from Anthropic, Perplexity, DeepSeek and Elon Musk’s Grok during the process.Cue emphasized that the deal with OpenAI does not limit Apple’s flexibility, saying it “allows [Apple] to add oth...