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Apple Inc., the tech behemoth, has observed its most substantial drop in iPhone earnings since the pandemic initially wreaked havoc on the world’s economy.
Their revenue from January to March saw a reduction of 10% compared to the same quarter in the preceding year, a scenario reminiscent of the 2020 iPhone launch delays caused by COVID-related factory shutdowns.
For the recent quarter, Apple reported its income at $90.8bn (£72.4bn), marking a 4% reduction from the previous year. This downturn signifies the fifth consecutive quarter of revenues retracting on a year-over-year basis.
With a profit of $23.64bn (£18.85bn), the company experienced a minor 2% profit decrease compared to the last year’s figures.
In contrast, Apple’s overall market valuation surged as its shares rose nearly 7%, signaling that investors had braced for an even steeper decline in sales.
The company’s CEO, Tim Cook, has shed light on how Apple is poised to integrate artificial intelligence (AI) into its future roadmap.
While competitors like Samsung have already showcased phones featuring AI, inclusively generative AI chatbots, Apple is yet to publicize its strategy for embedding AI into iPhones.
Expectations are high for the next iPhone to incorporate AI chips and to sport larger displays.
Apple is set to unveil its latest software updates during the annual developers’ conference in June.
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Generative AI is anticipated to empower phones with the ability to autonomously write software code, essays, or craft images in response to user prompts.
Cook expressed excitement about the future of generative AI within Apple, stating that the company is “very bullish” on these advancements and is actively investing in the space, hinting at “very exciting things” on the horizon.
Frequently Asked Questions (FAQs)
Why did iPhone sales drop?
iPhone sales dropped due to a reduction in consumer demand, which led to a 10% decrease in revenue compared to the same period last year.
How much has Apple’s profit and revenue decreased?
Apple’s profit for the past quarter was down by 2% to $23.64 billion, with overall revenue down 4% from a year ago to $90.8 billion.
Has Apple announced any AI plans for its iPhones?
Apple’s CEO Tim Cook talked about the inclusion of artificial intelligence in upcoming iPhones but has not provided detailed plans. It is expected that the next iPhone models will feature AI microchips.
When is Apple’s annual developers’ conference?
Apple holds its annual developers’ conference in June, where it is expected to reveal new software and potentially its plans for AI in iPhones.
Conclusion
Apple’s recent financial downturn reflects the same challenges that many tech companies face in a post-pandemic climate. Nevertheless, the slight surge in share value post-announcement indicates investor confidence in Apple’s ability to rebound. Additionally, the anticipated incorporation of AI into their products suggests that the company is looking to innovate and stay at the forefront of technological advancements. Much anticipation surrounds Apple’s developers’ conference in June, where more details about its AI plans and new software are expected to be unveiled.