Apple is expecting strong sales growth, which is good news as the company tries to bounce back from a decline in iPhone sales. Recently, Apple had a small drop in iPhone revenue during the busy holiday shopping season, and it didn’t meet Wall Street’s expectations. This was mainly because some features that make new Apple devices special using artificial intelligence (AI) weren’t available in some markets.
Apple’s CEO, Tim Cook, mentioned that these AI features will be available to more people in Europe starting this spring. After this announcement, Apple’s stock rose by over 3%. Unlike other companies like Microsoft, Apple has taken a careful approach to AI, focusing on making it a part of their products rather than spending a lot on data centers.
Even with these challenges, Apple’s overall sales went up thanks to strong sales of iPads and Macs. New chips in these devices encouraged customers to upgrade. The company’s CFO, Kevan Parekh, shared a positive outlook for the next quarter, predicting sales growth in the low to mid-single digits.
In the last quarter, Apple sold $69.14 billion worth of iPhones, which was less than the $71.03 billion expected. Sales in Greater China dropped to $18.51 billion, down from $20.82 billion a year ago. However, total sales for the quarter reached $124.30 billion, slightly above expectations, and earnings per share of $2.40 beat estimates.
Apple’s AI features, called Apple Intelligence, include new tools for drafting emails and sending messages. While these features are rolling out slowly, Cook noted that iPhone sales are better where AI is available. Plans to bring these features to new languages like French and German are in place for April, but there’s no timeline for China yet.
Cook explained that about half of the revenue drop in China was due to changes in the inventory held by resellers. Mac sales improved because of new models like the Mac Mini and MacBook Pro. The strong chips in these computers also support AI features, making them a great reason for customers to upgrade.
Apple’s services, including iCloud and streaming services, grew to $26.34 billion, which is a 13.9% increase from last year. While some people criticize Apple for its slow AI rollout, the growth in services is helping balance out the decline in iPhone sales, especially in China. The wearables section, which includes products like the Apple Watch and AirPods, brought in $11.75 billion in sales, just shy of expectations.
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