Apple recovered from a prolonged sales dip in the most recent quarter as the trendsetting corporation prepares to enter the artificial intelligence craze with a slew of new technologies expected to boost demand for the next iPhone.
The fiscal third-quarter statistics published Thursday covered the April-June period, which is normally a slow season for Apple as its loyal customer base waits for the new iteration of the iPhone, which is usually unveiled shortly after Labour Day.
Apple’s sales increased from a year earlier, a nice reversal of fortune after five consecutive quarters of year-over-year revenue drop.
Apple Breaks Out Of Recent Sales Slump As It Gears Up To Make Its Leap Into The AI Craze
Apple’s revenue increased 5% yearly to $85.78 billion this time, exceeding experts’ expectations. The Cupertino, California, corporation earned $21.45 billion, or $1.40 per share, an 8% rise over the same period last year. The earnings also exceeded analyst expectations.
During Thursday’s extended trading, Apple’s shares fluctuated between tiny increases and modest decreases as investors reviewed the results.
However, sales of Apple’s flagship product, the iPhone, fell 1% from the previous year to $39.3 billion. That reduction was not as severe as the January-March period, when iPhone sales fell 10% from the previous year, and the device now appears to be on the verge of a strong rebound.
That’s because Apple intends to release several artificial intelligence capabilities that will make its virtual assistant Siri smarter while doing various useful and enjoyable jobs, such as assisting with text draughting and making unique emojis on demand. The AI tools will be added in a free software update scheduled for the autumn, but most of the functions will only work on iPhones equipped with a unique chip, which has previously only been accessible on two expensive models released by Apple last year.
The next iPhone model, the iPhone 16, is slated to include the AI processor, which analysts believe will encourage buyers who have been holding on to previous smartphones to upgrade to benefit from the new features. That assumption is why Apple’s stock price has risen 13% since the company unveiled its AI technologies in early June, generating approximately $400 billion in shareholder wealth thus far.
]Apple’s drive into AI may also help fuel its constantly rising services division, which saw sales increase 14% yearly to $24.21 billion in the most recent quarter. Although the services division has thrived for years, it faces regulatory risks that could impede its performance.
The US Justice Department has filed a high-profile antitrust complaint against Google, targeting a lucrative arrangement that makes Google the default search engine on the iPhone and Safari browser, generating approximately $20 billion in income. A federal judge is anticipated to issue a decision by the end of the year.
Apple Breaks Out Of Recent Sales Slump As It Gears Up To Make Its Leap Into The AI Craze
The Justice Department is also suing Apple in a second case filed in March, alleging that the corporation improperly excludes competitors by placing unnecessary obstacles around the iPhone. In filings filed Thursday in New Jersey federal court, Apple fiercely denied any wrongdoing and motioned to dismiss the case.
That triggered a legal process that will take several months before the presiding judge decides whether to dismiss the case or allow it to proceed, with a decision expected late this year or early next year.
Apple’s sales in China continued to fall, as they had for much of the last year, which worried investors because the area is one of the company’s important markets. Apple’s revenue in China fell 7% in the most recent quarter compared to the previous year.
SOURCE | AP
