AI could make the iPhone obsolete within the next decade
In the latest hearing at the antitrust trial between Google and the US Department of Justice, Apple's services chief Eddy Cue made a bold statement that artificial intelligence (AI) could make the iPhone obsolete within the next decade.
According to Bloomberg, Mr. Cue emphasized that the rapid development of AI technology is shaking the inviolable position of smartphones, including Apple's iconic iPhone.
“You may not need an iPhone in 10 years, which sounds crazy, but it’s entirely possible,” Cue said, arguing that the combination of AI and next-generation wearables could completely replace the central role that smartphones currently play.
iPhone - a glorious past, a challenging future
The statement comes as Apple remains largely dependent on the iPhone as its main source of revenue, accounting for about half of the company's total revenue each year.
However, after nearly two decades of dominating the smartphone market, the iPhone is facing a big problem: how to avoid falling behind as the AI wave becomes stronger and stronger.
Apple had high hopes for its successor products such as self-driving cars or Vision Pro virtual reality glasses, but they have not met expectations.
The Apple Car electric car project has been killed after nearly 10 years of development. Meanwhile, the Vision Pro mixed reality glasses launched earlier this year, although receiving a lot of attention, have not made a breakthrough in sales.
Currently, Apple is shifting its focus to smart wearable devices with integrated AI, including initial research on virtual reality (AR) glasses, one of the potential candidates that can replace the iPhone in the future.
It's too early to write an obituary for the iPhone.
Still, Cue’s comments are more of a prediction than a concrete plan. In fact, Apple is still investing heavily in the iPhone upgrade cycle.
According to the latest rumors, Apple could launch its first foldable iPhone in 2026 and is aiming to create an “all-screen” iPhone by 2027, with no more cutouts for the camera or Face ID.
In addition, until now, screenless AI devices that are expected to replace smartphones have not proven their capabilities. Two products that attracted attention last year, Humane AI Pin and Rabbit R1, were both criticized for their weak performance and incomplete experience.
While a number of tech companies continue to research AI-integrated wearables, none have really stood out or come close to the popularity of smartphones.
Apple, Google and the AI Search War
Cue made the comments while testifying in an antitrust lawsuit targeting the deal between Apple and Google, where Google pays billions of dollars a year to be the default search engine on Safari.
This is a key part of the business model of both tech giants, with Apple likely to earn at least $20 billion a year from the deal.
However, the future of this partnership is in doubt if the court rules against Google. Cue revealed that Apple is considering integrating AI search engines such as OpenAI's ChatGPT, Anthropic's Claude, or Perplexity AI into the Safari browser as alternatives to traditional search engines.
While Eddy Cue's remarks don't amount to a strategic commitment, they do show that Apple is keeping up with the dramatic transformation of the tech world following the AI boom.
In the next decade, not only Google but even Apple's iconic iPhone will have to adapt or face the risk of being replaced.
A new technology race is beginning and this time, the center of the game may no longer be phones.