Apple exceeded Wall Street’s expectations in the fourth quarter, as a rise in demand for iPads and Macbooks compensated for a drop in iPhone sales.
The most valuable company in the world, valued at more than $3 trillion on the stock exchange, has reported a total revenue of 85.5 billion dollars for the three-month period ending June 30, beating forecasts of $84.4. The revenue was up by 4.9 percent from the previous year.
The iPhone’s sales, which usually account for about half of the business of the company, dropped by 0.9 percent to $39.3 Billion due to the weak consumer sentiment in China and the competition.
In fact, revenues from Greater China fell by 6.5% to $14.7 billion in the third quarter.
Apple shares were up 0.5 percent, or $1.23 at $219.59, in New York’s after-hours trading last night. Stocks have risen by 17 percent since the beginning of the year, as investors bet that Apple’s artificial intelligence-powered iPhones will trigger a massive upgrade cycle.
Tim Cook, Apple’s CEO, , announced plans for AI-powered iOS to improve the user’s experience. This included integrating ChatGPT in its devices.
Tim Cook, Apple’s chief executive, described plans to enhance iPhones with AI.
Dan Ives of Wedbush Securities predicted a boom in iPhone sales as a result of “pent up demand around an AI driven supercycle”, starting with the iPhone 16 later this fall “as our estimates show that 270 million iPhone owners haven’t upgraded their iPhones for over four years”.
Jacob Bourne of Emarketer said that Apple has integrated its AI efforts with other important parts of its core businesses. In the future, Apple’s AI investments will be evaluated primarily through device sales and possible growth in subscription revenues.
The company’s success in the future depends on two things: keeping AI development cost low and making sure that new AI-driven capabilities compel even price-sensitive customers to upgrade their devices.
Apple produces hardware, including smartphones, tablets, computers and smartwatches. Apple also sells its software platforms, such as music and TV streaming.
In the first half of this year, released its Vision Pro Mixed Reality headset. The company also sells its software platforms, such as music and TV streaming. The company also offers a high-yielding savings account for consumers.
Apple’s iPad sales grew by 23.7% to $7.16 Billion, exceeding analyst expectations of $6.61 Billion, after Apple launched new products, including the iPad Pro with M4 silicon chips and an iPad Air with a larger display.
Apple’s Chief Financial Officer, Luca Maestri said that the customers love Apple’s latest iPad lineup for its “new design and display, unmatched performance, AI abilities, and more”. He said that half of those who bought iPads in the last quarter were first-time buyers.
According to data from the London Stock Exchange Group, Mac sales increased by 2.5 percent to $7.01 Billion, as compared to estimates of $7.02 Billion. Apple’s wearables division, which includes sales of Apple Watches, AirPods headphones and other products, saw sales fall by 2.3% to $8.1 billion.
Apple’s Services Division, which includes Apple Music, Apple TV, and the App Store, grew by 14.1% to $24.21 Billion, exceeding analyst expectations of $24.01 Billion.
US stocks plunged sharply before the earnings announcement on Thursday, amid concerns about a cooling economic climate and a conservative outlook from Arm Holdings. The chipmaker’s forecast dampened investor confidence in artificial intelligence. The S&P 500 closed the day at 5,446.68 down 75.62, or 1.4%.
Cook stated that Apple Intelligence, the company’s AI division, will continue to invest heavily. Apple’s Cook said that the company remains “extremely optimistic” about AI and its potential to enhance customers.
Apple on Thursday asked a US Judge to dismiss a lawsuit filed by the US Government accusing it of monopolising illegally the smartphone market.
Apple has been accused by the Justice Department of stifling competition through contractual restrictions and withholding access to developers. Apple is accused of locking users into their own products by preventing the integration between iPhones and other apps and devices.
Apple, in a motion filed before the federal court of Newark in New Jersey, argued that placing reasonable restrictions on third-party developers access to its technologies did not constitute anti-competitive behavior, and forcing Apple to share technology would dampen innovation. Apple stated that if such a theory were to be accepted, courts would have to supervise product design and policy decisions in dynamic markets.
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