Apple has successfully emerged from a recent dip in iPhone sales, indicating that its efforts to incorporate artificial intelligence have resonated with consumers. The sales for the iPhone reached $46.22 billion during the July-September period, marking a 6% increase from the same quarter last year. This upturn reversed two consecutive yearly declines in iPhone sales.
Apple’s total quarterly revenue and profit surpassed analyst expectations, amounting to $94.93 billion, which is a 6% rise from the previous year and approximately $400 million higher than forecasts. However, Apple’s stock price fell by about 2% in extended trading on Thursday, with shares trading around $221, due to investor disappointment over a less optimistic forecast for the holiday shopping season.
Investors are placing their bets on the idea that as Apple’s AI technology becomes more widely accessible, it will motivate a significant number of consumers using older iPhones to upgrade to newer models. These consumers are expected to be eager to access the latest advancements in technology.
‘We believe it’s a compelling upgrade reason,’ Tim Cook, Apple’s CEO, stated. However, Thomas Monteiro, an analyst from Investing.com, suggests that if Apple’s AI technology were truly captivating consumers, iPhone sales would be increasing at a more rapid rate. This implies that the company may need to enhance its efforts to impress the public and boost sales.
