Apple's Eddy Cue: 'We might not need an iPhone' 10 years from now

While testifying on Wednesday during Google’s antitrust trial, Apple executive Eddy Cue reflected on how seemingly invincible companies can suddenly lose relevance.

“People still are going to need toothpaste 20 years from now, 40 years from now. You may not need an iPhone 10 years from now. As crazy as that sounds,” Mr Cue, the senior vice president of services at Apple, told a lawyer representing Alphabet, owner of Google.

“You have to earn it. You have to develop. And so what we've seen always happen is the only way that you truly have real competition is when there's technology shifts.”

Mr Cue was responding to a question about what artificial intelligence is starting to do to search engine companies such as Google, and explaining how technology businesses often struggle to adjust.

He explained how he thought Apple had avoided complacency and had adjusted to huge technological shifts.

“One of the best things that Apple did in its history is we killed the iPod,” he said, with US District Judge Amit Mehta closely listening.

“We killed the iPod ourselves with the iPhone. Most companies have a very difficult time killing themselves when new technology comes along because you're afraid, why would you kill the golden goose, in a sense? And so, what I see generally is new technologies come about, new companies get formed, the incumbents have a hard time with it.”

Even the most casual tech and business observers would point out that Mr Cue’s testimony requires ample context.

Apple is sitting on an unprecedented cash reserve, and sales of its iPhones, computers and internet services show no sign of slowing.

Apple rarely makes its executives or employees available for interviews at such a lengthy and granular level.

Those attending Wednesday's court session got a glimpse of a top Apple executive lucidly discussing the daily grind inside one of the world’s most admired companies.

Mr Cue's testimony lasted more than an hour in a case claiming Google is a monopoly that should be broken up.

The trial has seen other tech executives, along with analysts, economists, and regulatory historians called to the witness box to provide insights to Judge Amit Mehta.

He ruled last year that Google had been illegally exploiting its dominance in the search sector to stifle competition and innovation, therefore harming consumers.

Among the DOJ's solutions is a proposal that would require Google to share search data with rivals to increase competition.

Google, however, has asserted that the DOJ's solutions unfairly penalise the company, and throughout the remedy trial has sought a significantly less consequential penalty.

“The plaintiff’s proposal is too broad,” Google chief executive Sundar Pichai said last week, questioning how productive it would be to share the company's search data.

“It would be trivial to reverse engineer and effectively build Google search from the outside.”

During the DOJ's trial, which began in 2023, Mr Cue was called to the stand, where he discussed a long-standing deal the company had to make Google the default search engine on its computers and iPhones.

During Wednesday's questioning, he painted a picture of a fast-moving tech landscape driven by AI developments that could render a strict remedy from the DOJ moot.

Mr Cue said Google's search engine makes Apple's products better, and seemed to warn against a harsh remedy that would, in turn, hurt Apple.

“We have to pick what's best for our customers and today, that is still Google,” he said.

Later Wednesday evening, as media reports began to pile up related to the future prosperity of Google in the wake of how AI was changing the nature of search, the company issued a press release.

"We continue to see overall query growth in Search," the statement from Google said.

"That includes an increase in total queries coming from Apple’s devices and platforms. More generally, as we enhance Search with new features, people are seeing that Google Search is more useful for more of their queries — and they’re accessing it for new things and in new ways, whether from browsers or the Google app, using their voice or Google Lens."