In a surprising comment during the Google (GOOGL) Search antitrust trial, Apple’s (AAPL) services chief Eddy Cue suggested that the iPhone could become obsolete within the next decade. According to Bloomberg, Cue remarked, “You may not need an iPhone 10 years from now,” citing the rapid evolution of artificial intelligence (AI) as the reason. His comments hint at a future where AI-driven innovation may redefine how we interact with technology.
Notably, Cue defended Apple’s $20 billion annual search deal with Google in an antitrust trial, calling it highly profitable. While regulators claim it boosts Google’s dominance, Cue highlighted a shift, noting Safari’s first drop in search use, likely due to AI tools. He suggested AI search, like Microsoft (MSFT)-backed ChatGPT, could eventually replace traditional search engines.
What Comes Next After the iPhone?
It might sound surprising for Apple to downplay the iPhone’s future, especially since it still makes up over half of the company’s revenue. But according to Eddy Cue, AI represents a major tech revolution, powerful enough to shake even the biggest players.
Some tech companies, like Meta (META) with its Ray-Ban smart glasses, are already exploring AI assistants that don’t rely on smartphones. Similarly, Apple is investing heavily in the Vision Pro headset and reportedly developing other devices like smartwatches and future AirPods, aiming to let users interact with AI.
Seen this way, Cue’s comment feels less like a prediction and more like a mindset, a reminder that even the iPhone isn’t safe from being replaced one day.
Cue further hinted that AI might push the iPhone into retirement, just like Apple once did with its iconic iPod. Interestingly, Apple has a history of phasing out its hit products. The iPod faded as Apple chose to evolve into offering a more versatile, all-in-one device, the iPhone.
Is Apple a Buy or Sell Now?
On TipRanks, AAPL stock has a consensus Moderate Buy rating among 29 Wall Street analysts. That rating is based on 17 Buys, eight Holds, and four Sells assigned in the last three months. The average AAPL stock price target of $228.84 implies a 16.61% upside from current levels.
