Apple Executive's Testimony Triggers Alphabet Stock Decline

Statements from Apple Manager Lead to Alphabet Stock Losses

The integration of AI-based search functions into common web browsers is a topic that is currently occupying the tech industry intensively. An Apple manager recently caused a stir when he gave insights into the company's future plans during court proceedings. His statements led to a significant drop in Alphabet's stock price. Eddy Cue, responsible for Apple's services business, stated in court that Apple plans to integrate a new AI-powered search into the Safari browser, in addition to Google. This statement triggered concern among investors and led to a 7.51 percent drop in Alphabet's share price. Cue also reported a decline in classic web searches via Safari in April and attributed this to the increasing use of AI software for search queries. Google countered that the total number of searches from Apple devices and platforms continues to rise. The trial in which Cue testified revolves around an antitrust lawsuit filed by the US government against Google. The question of whether AI chatbots like ChatGPT or Perplexity could threaten Google's dominance in the search engine market has been discussed in the industry for some time. However, Google continues to see growth in this area. Cue's statements seem to confirm investors' fears of a potential shift in user search behavior. For Alphabet, whose main source of revenue is advertising related to search queries, this is a sensitive issue. Google itself is working on integrating AI-generated summaries into search results and is competing directly with ChatGPT and other AI chatbots with its Gemini software. Apple also has a vested interest in the outcome of the proceedings. A central point of the lawsuit is the agreements between Apple, Mozilla, and Google, according to which Google is pre-set as the default search engine in the Safari and Firefox web browsers. In return, Apple – according to court testimony – receives billions of dollars from Google, around $20 billion in 2022 alone. The US government argues that these agreements solidify Google's market power and should therefore be prohibited. Another statement by Cue, almost lost in the context of the stock losses, concerned the future of the iPhone. He speculated that the iPhone might no longer be needed in ten years due to technological change driven by AI. This statement is particularly noteworthy as the iPhone is Apple's most important product and the main driver of the company's high profits. Sources: - t3n.de: How an Apple manager sent Google stock plummeting with one statement - finanznachrichten.de: How an Apple manager sent Google stock plummeting with one statement - t-online.de: Apple manager sends Google stock plummeting after statement on plans - futurezone.at: Apple manager sends Google stock plummeting with one sentence - finanzen.net: Alphabet stock buckles after statements by Apple manager - finanzen.net: Roundup 2: Apple manager lets Google Group stock slump - t3n.de: News - bild.de: With just one sentence: Apple manager sends Google stock plummeting - t3n.de: Smartphone