CNBC's Steve Kovach reports on news regarding Apple's report that searches in Google browser have fallen for the first time.

Apple's services head, Eddie Cue, has reported a significant shift in the tech landscape: searches conducted via Google's browser reportedly declined for the first time. The announcement, which came during a Department of Justice trial focused on Google, noted the downturn transpired in April. Cue highlighted the financial relationship between Apple and Google, explaining that Apple receives around $20 billion annually from Google to maintain its position as the default search engine on Apple's Safari browser. This revenue model grants Google a share of income every time a user initiates a search on Apple's platform.

The decline in Google searches is coupled with the rise of artificial intelligence (AI) search alternatives. Cue acknowledged explorations into AI-based search options within Apple's iOS ecosystem, mentioning companies like Perplexity and Anthropic as key names in this space. It's noteworthy that while ChatGPT, another AI-driven platform, is integrated within Apple's Siri, it doesn't function as a direct competitor to Google in terms of search capabilities within Safari.

Cue has noted concerns over the prospect of losing the current revenue share deal between Apple and Google, which the Department of Justice might reconsider as part of its broader case against Google. Amid these developments, Alphabet's shares reflected the volatility, showing a decline of nearly 5%.



Apple says searches in Google browser fell for the first time in April

We're getting a market flash on Alphabet, which is down almost 5%. Let's get to Steve Kovacs. Steve? Yeah, Carl, this is off comments from Eddie Cue. He's the head of services over at Apple. He's testifying right now in that DOJ trial that Google already lost. They're trying to figure out the remedies here. But he said, according to several reports we're getting in, that searches in the browser, using Google obviously, fell for the first time in April. Now, the reason why Eddie Cue is here testifying is because Apple collects up to $20 billion a year in payments from Google to be the default search engine when you open up your Safari browser on your phone and start typing in a search. Every time you do that, Google gets a revenue share from that. And now he's saying Google searches in that bar have gone down. And this is obviously a bad sign for Google, as we talk so much about artificial intelligence eating into the market share. According to these headlines that we're getting, Cue also said that they're looking at AI search alternatives within the iOS ecosystem. And mentioned by name, companies like Perplexity, that AI search engine we talk about so much, and also Anthropic, a rival to Chachibit. Obviously, Chachibit is already integrated into the iOS system, although it's part of Siri. It doesn't really do searches as straight up as Google does. It's not also in the Safari browser. So look, you see shares down 4.5, 4.6% on these headlines coming from Eddie Cue. And we're seeing, he also said, this is the quote, I think, of the whole thing, Cue saying he's losing sleep over the possibility that Apple would lose the revenue share deal with Google because that is one of the remedies the DOJ is looking here as it looks to finish up this case against Google, guys.

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