Apple CEO Tim Cook assured investors on Thursday that the tech giant has significant artificial intelligence developments on the horizon, despite a dip in shares, even with sales growth in the last quarter of the previous year.
While Apple reported a slight increase in revenue compared to the same quarter the previous year, setting new records in services and digital content income, concerns about the Chinese market overshadowed the positive news.
The company disclosed a decline in net sales in Greater China, encompassing mainland China, Hong Kong, and Taiwan, to $20.8 billion in the latest quarter compared to a year ago. This announcement caused Apple’s shares to drop more than 3 percent in after-hours trading.
During an earnings call, Tim Cook downplayed the slowed sales in China, emphasizing that iPhones remained among the most popular smartphones in the country. Despite the challenges, Cook expressed optimism about China’s long-term prospects, stating, “We’ve been in China for 30 years, and I remain very optimistic about China over the long term.”
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Billions of users
During an announcement, Tim Cook revealed that the number of Apple devices in use globally has reached a new peak of 2.2 billion, accompanied by a record-breaking revenue generated from services and subscriptions.
In the holiday season quarter, Apple reported $119.6 billion in sales, primarily driven by iPhone sales, marking a two percent increase from the same period the previous year. The company’s profits for the quarter totaled $33.9 billion, with diluted earnings per share surpassing expectations at $2.18.
Notably, iPhone sales amounted to $69.7 billion, showing improvement compared to the same quarter in 2022. According to data from Counterpoint Research released on Thursday, Apple’s share of the smartphone market in the final three months of last year reached its highest point since late 2020. This resurgence is attributed to the recovery from Covid-19-related factory shutdowns that caused production disruptions.
Counterpoint Research highlighted that the last months of the year typically exhibit robust performance for Apple, with increased iPhone sales driven by heightened demand during the holiday season.
Special computing era?
Looking ahead, investors are eagerly anticipating the performance of Apple’s highly awaited Vision Pro mixed reality headset, scheduled for launch in the United States on Friday.
Tim Cook enthusiastically described the Vision Pro as a “revolutionary device,” marking the era of “spatial computing.” He expressed anticipation for people to experience the device firsthand as it becomes available in Apple stores across the United States, with plans for availability in other countries later in the year.
Cook emphasized Apple’s commitment to investing in cutting-edge technologies that will shape the future, including artificial intelligence (AI). He stated, “As we look ahead, we will continue to invest in these and other technologies that will shape the future,” underscoring the company’s ongoing dedication to advancements in AI and beyond.
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Apple generative AI?
Tim Cook assured that Apple will reveal details about its artificial intelligence (AI) endeavors later this year. In the competitive landscape of AI, where companies like Google and Microsoft strive to lead, Apple is poised to contribute its distinctive approach to AI that could potentially revolutionize various sectors, including work, leisure, and healthcare.
While Apple is sometimes seen as trailing in the AI race, the company has already integrated AI into its camera technology, Siri digital assistant, and other products. Analysts speculate that Apple is likely working on its own computer chip for “AI Macs,” showcasing its commitment to AI advancements.
Tim Cook mentioned during the earnings call that there is significant internal work happening on AI at Apple, and he expressed excitement about the developments. This hints at Apple’s ongoing efforts to make significant strides in the field of artificial intelligence.
