AI technology is advancing so rapidly that the iPhone could be outdated in the next decade, Apple services chief Eddy Cue said today when testifying in the Google vs. DoJ antitrust case (via Bloomberg).
"You may not need an iPhone 10 years from now, as crazy as it sounds," Cue said. He was referring to the way that AI is likely to evolve in the coming years, and how wearables combined with intuitive AI functionality could replace traditional smartphones.
The iPhone is still Apple's key revenue driver, and Apple so far hasn't been able to find its next big product that could replace the iPhone as main money maker. Apple canceled its car project, and its first VR headset hasn't sold well. Apple is now focusing on robotics, and is continuing to work on wearables that could eventually lead to augmented reality smart glasses that would be a viable iPhone alternative.
Cue was, of course, just speculating, and Apple still has multiple iPhone innovations that are set to come out over the next several years. Apple could debut its first foldable iPhone as soon as next year, and in 2027, Apple is looking to introduce an all-display iPhone that has no cutouts for the camera or Face ID. So far, AI-based wearables have not successfully replaced smartphones. The Humane AI Pin was a failure, and the Rabbit R1 was also lambasted for poor performance when it launched last year. Other companies are also working on AI screen-free wearables, but none have caught on as of yet.
Cue was testifying due to Apple's search engine deal with Google, which is likely to be prohibited as part of the antitrust remedies that Google is facing to address its dominance in the search market.
Cue said that AI search solutions are poised to replace traditional search engines, and Apple is considering adding AI search tools from companies like OpenAI, Anthropic, and Perplexity to Safari in the future as options for people to select. Apple stands to lose at least $20 billion per year if Google isn't able to pay to be the default Safari search engine.
