While much of the technology sector has recently highlighted how artificial intelligence is driving sales growth, Apple has taken a different approach.
The iPhone manufacturer, known for its cautious rollout of AI-driven products, announced a 9.6 percent revenue increase in the latest quarter, reaching $94.04 billion. This growth was fueled by strong sales of established products such as the iPad, Mac, and the App Store. These familiar offerings helped push profits up by 9 percent year-over-year to $23.43 billion, setting a new quarterly record previously held since 2021.
These results significantly exceeded market expectations, with analysts forecasting $89.34 billion in revenue and $21.43 billion in profit. Following the announcement, Apple's stock rose more than 2 percent in after-hours trading.
Despite its historical leadership in the stock market, Apple has lagged behind this year. Investor concerns have centered on the company's slow pace in launching compelling AI products, vulnerability to tariffs affecting overseas smartphone manufacturing, and potential impacts from global antitrust investigations. As a result, Apple's shares have declined by 15 percent this year, contrasting with a 9.5 percent gain in the tech-heavy Nasdaq index.
Mike Frazier, chairman of Bedell Frazier Investment Counselling and an Apple shareholder, commented, "There is a perception that Apple is falling behind in the AI revolution. The company needs to demonstrate a clear commitment to investment and innovation in this space."
Typically, Apple generates excitement during the summer in anticipation of its fall iPhone launch. However, this year, the introduction of a new software design in June was overshadowed when executives publicly apologized for the delay in releasing an upgraded version of Siri integrated with generative AI, citing that it did not meet the company’s high-quality standards and required further refinement.
0 Comments
No comments yet. Be the first to comment!