Apple's iPhone sales fall despite AI push
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The news: Apple reported what chief executive Tim Cook called its "best quarter ever" for the three months ending 31 December, but the company's stock dipped in after-hours trading due to its iPhone sales suffering a slight year-on-year decline.
The tech titan's revenue was nonetheless better than analysts expected thanks to outperformance from Mac, iPad and services sectors.
The numbers: Apple generated USD124.3 billion ($200.2 billion) in revenue and USD36.3 in net profit for the quarter, metrics up 4% and 7% year-on-year respectively.
But the company's cash cow saw a slight decline, with iPhone sales bringing in USD69.1 billion versus USD69.7 billion in the same quarter last year.
The company saw growth in Mac and iPad categories, generally more static than other sectors, of 13% and 15% respectively. The services segment, which includes App Store revenue and subscriptions to services like Apple TV+, grew 12% year-on-year to USD26.3 billion.
The company's stock is down 1.17% in after-hours trading.
The context: Apple's latest iPhone, the 16 series, was marketed as the first to take advantage of generative AI. New Apple Intelligence features only work on the iPhone 16 devices and the iPhone 15 Pro line.
That, investors hoped, would encourage those who are using many years-old iPhones to shell out for new devices, sparking an upgrade supercycle. With Apple Intelligence thus far receiving tepid reviews (most of the advertised features have yet to land), that has not yet materialised.
What they said: Cook said that Apple is reporting "our best quarter ever".
"We were thrilled to bring customers our best-ever lineup of products and services during the holiday season. Through the power of Apple silicon, we’re unlocking new possibilities for our users with Apple Intelligence, which makes apps and experiences even better and more personal," he said.
"And we’re excited that Apple Intelligence will be available in even more languages this April."
The source: Apple media release
