An Apple exec's testimony highlights Google's innovator's dilemma

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Fri, May 9, 2025

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An Apple exec's testimony highlights Google's innovator's dilemma

^{Published on 2025-05-09 12:06:33 - Fortune}

Google continues to dominate search, but marketshare is slipping and revenue growth is slowing

An Apple executive's comment about AI chatbots potentially eroding Google's search business led to a significant drop in Alphabet's stock price, but the situation is more complex than it initially appears. The executive's remarks were made during a private meeting and were not intended for public consumption, yet they sparked widespread speculation about the impact of AI chatbots like ChatGPT on Google's core search business. While AI chatbots do offer a new way for users to find information, Google's search engine remains dominant, and the company is actively integrating AI into its own services. Furthermore, the revenue models of AI chatbots are still unclear, and they may not pose an immediate threat to Google's advertising-based business model. The incident highlights the market's sensitivity to any perceived threat to Google's search dominance, but a deeper analysis suggests that Google's position is not as precarious as the stock market reaction might imply.

Read the Full Fortune Article at:
[ https://fortune.com/article/an-apple-exec-suggested-ai-chatbots-were-eroding-googles-search-business-sending-alphabet-shares-plummeting-the-truth-is-more-complicated/ ]

N@N

An Apple exec's testimony highlights Google's innovator's dilemma