According to Zhitong Finance APP, Apple (AAPL.US) made an unusual statement while trying to salvage its lucrative search partnership with Alphabet (GOOGL.US) subsidiary Google, claiming that this deal may not be necessary in the long run, and even the iPhone may no longer be in use.Apple's Senior Vice President of Services, Eddy Cue, articulated this view while testifying in the U.S. Department of Justice's antitrust trial against Google on Wednesday. Although Apple receives about $20 billion annually from Google—as a return for setting Google's search engine as the default option on its devices—Cue warned that the entire landscape is changing.He stated that Apple has plans to reshape its Safari web browser around AI services such as OpenAI's ChatGPT, Perplexity AI Inc., and Anthropic PBC's Claude.Moreover, customers are abandoning traditional search methods. He noted that in April, the number of Google search queries on Apple devices saw a decline for the first time, a result of users turning to AI.Cue said, &#34;Technological changes create these opportunities.&#34; He added that he believes AI providers will eventually become alternatives to the Safari search engine.However, it is equally clear that Apple does not want to lose its current partnership with Google, which would be threatened if the U.S. Department of Justice wins its case. Investors believe this possibility poses a threat to both companies.On Wednesday, Alphabet's stock fell by 7.3%, while Apple's dropped by 1.1%. Google earns billions of dollars annually from search queries on more than 2 billion active devices from Apple.Currently, the Safari web browser uses Google as its preferred search engine, while also offering alternative search engines like Yahoo Search, Microsoft's Bing, and DuckDuckGo. Apple has revenue-sharing agreements with all providers, but Google pays the highest fees. This agreement is a core factor in the U.S. government's lawsuit against Google.Cue revealed that Apple plans to shift its browser towards AI systems, with a clear purpose: to downplay the importance of the existing Google agreement. If the industry has already changed and alternatives to Google's search engine exist, then U.S. judges may find no reason to overturn this long-standing agreement.Jefferies analyst Brent Thill stated, &#34;Apple may emphasize data points to support the argument that Google does not have anti-competitive behavior in the search field, which makes sense.&#34;However, Apple and Google have the opportunity to deepen their collaboration around AI. Google has already integrated its Gemini AI system into search. When users search through Google, AI results are typically presented first. This is also the case on current iPhones, iPads, and Macs.Apple rarely publicly discusses future plans. Cue's remarks about the iPhone are particularly striking: &#34;While it sounds crazy, you may not need an iPhone in ten years.&#34; The iPhone contributes more than half of Apple's revenueCue stated during his testimony that he has always been concerned about terminating the revenue-sharing agreement with Google. He also mentioned that Google should still be the preferred search engine. Although new services will be rolled out gradually, &#34;they may not become the default option,&#34; Cue said.Apple is currently using OpenAI's ChatGPT in another product to fulfill queries for the Siri digital assistant. The company also plans to add Google Gemini as an alternative later this year

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Apple stated that it may no longer need the $20 billion search partnership with Google in the future. Apple Services Vice President Eddy Cue pointed out during the U.S. Department of Justice's antitrust trial that users are turning to AI search, leading to a decline in Google search queries for the first time. Although Apple relies on Google's revenue, Cue believes that technological changes will drive AI services to replace traditional search. Investors expressed concerns about this, resulting in a 7.3% drop in Alphabet's stock price and a 1.1% drop in Apple's

- Apple (AAPL) has expressed that its lucrative search partnership with Google (GOOGL) may not be necessary in the long term, as stated by Eddy Cue during a U.S. antitrust trial.  
- Despite receiving approximately $20 billion annually from Google for being the default search engine, Cue noted a shift towards AI services, with a decline in Google search queries on Apple devices in April.  
- Investors reacted negatively, with Alphabet's stock dropping 7.3% and Apple's by 1.1%, as the future of their partnership remains uncertain amid evolving technology and potential legal challenges.

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Apple attempts to salvage a $20 billion Google search deal: future cooperation may no longer be necessary