Alphabet Loses $170B as Google Search Declines on iPhones

Alphabet Inc. experienced a significant market value loss of over $115 billion, with some reports citing up to $170 billion, following court testimony from Apple executive Eddy Cue revealing that Google's search traffic on Apple devices declined for the first time in over two decades. This decline threatens Alphabet’s core search business, which generates more than half of the company's revenue, as Apple considers integrating AI-powered search alternatives into its Safari browser—potentially replacing Google as the default search engine, a position Google has paid billions annually to maintain. The shift by iPhone users toward AI competitors like ChatGPT and Perplexity signals a growing challenge to Google's dominance in search advertising. The revelations occurred during an ongoing federal antitrust trial where Judge Amit Mehta is expected to decide on remedies for Google's previously ruled illegal search monopoly, possibly including the end of default search agreements with Apple and others. Investors reacted sharply to these developments, reflecting concerns over Alphabet’s long-term ability to maintain its search revenue amid rising competition from AI technologies. Apple's move to explore AI search services and the related decline in Google search usage on Apple devices underscores the increasing pressure on Alphabet’s search business in the face of evolving AI-driven alternatives.