Apple Inc. faced a slight downturn in iPhone sales at the close of last year, despite unveiling new artificial intelligence (AI) features. The tech giant experienced a 1% decline in iPhone sales, totaling $69.1 billion compared to the previous year. However, Apple's profits surged by 7% year-on-year, reaching $36.3 billion, driven by robust computer sales and an expanding services business.
The introduction of AI features was met with a tepid response, yet it spurred stronger sales in regions where available, such as the United States. Notably, Apple recorded a significant number of purchases from existing iPhone users upgrading to newer models. While overall sales rose by 4% to $124.3 billion, the services sector, including Apple TV, Apple News, and Apple Pay, contributed notably to this growth.
Apple's gradual integration of AI into its products began last year in the US. The company plans to expand these features to more languages by April. However, the firm faces challenges including a sales slowdown in China and potential tariff impacts from policies under President Donald Trump. The AI features were primarily available in the US, though their availability in other regions remains unspecified.
Despite the challenges, analyst Jacob Bourne emphasized Apple's need to accelerate its AI roll-out and innovate with new product types to maintain its competitive edge.
"The results show Apple can still execute, but the next few quarters will test whether it can balance its cautious approach with the market's hunger for AI innovation." – Jacob Bourne