Google Antitrust Verdict Impacts Apple's Revenue, Highlighting the Importance of AI Transformation

The court ruled that Google violated antitrust laws by paying Apple a substantial fee to ensure that Google became the default search engine for Safari. This fee has skyrocketed to over $20 billion in recent years.

Although the ruling targets Google, it significantly impacts Apple. With annual revenues exceeding $380 billion and a net profit of about $100 billion, losing this "passive income" is a heavy blow to Apple.

However, Apple is transitioning to AI, launching the "Apple Intelligence" suite, which integrates AI chatbots into software like Siri. This move opens up new revenue streams for Apple in the post-search engine era.

Apple has partnered with OpenAI, where users subscribing to ChatGPT membership result in OpenAI returning commissions to Apple. Apple is expected to reach new agreements with AI companies to avoid monopolistic accusations.

The court plans to discuss how to lift the monopoly status next month. It may require Apple to change default settings to create a fair competitive environment. Apple devices might emulate the EU by displaying multiple search engine options when the browser is first opened.

Apple anticipates that the Intelligence suite will change how users interact with their devices. Siri is being upgraded to facilitate users in making inquiries to AI across various devices.