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Essential Highlights
- In the earnings conference on Thursday, CEO Tim Cook revealed that the quantity of iPhone upgrades during Apple’s fiscal first quarter exceeded all prior records.
- This achievement aligned with Apple’s improvement of its artificial intelligence capabilities, with Cook emphasizing that the iPhone 16 excelled in regions where intelligent features were accessible.
- Apple’s AI has yet to debut in China, where the firm’s revenue has dropped by 11% compared to the previous year.
During the earnings discussion on Thursday, CEO Tim Cook noted that in Apple’s (AAPL) fiscal first quarter, the count of iPhone upgrades surpassed historical records.
This accomplishment followed the launch of the iPhone 16 series in September, which has outshined the iPhone 15 introduced in September 2023.
One factor driving customers to upgrade is the desire to utilize Apple’s intelligent features, a collection of AI tools offered on the iPhone 15 and iPhone 16 models. Cook pointed out that sales of the iPhone 16 have been more robust in regions where intelligent features are present, while they remain relatively weak in areas where they have not yet been introduced.
This contrast may indicate opportunities for revenue expansion in markets such as China, where regulatory challenges have hindered the rollout of Apple’s AI. The area experienced an 11% year-over-year drop in Apple’s revenue during the first quarter, while Chinese smartphone brands like Vivo and Huawei captured additional market share. Overall, Apple’s iPhone sales experienced a year-over-year decrease of less than 1%, amounting to $69.14 billion.
Apple disclosed that it plans to launch additional language versions of its AI in April, including French, German, Italian, Portuguese, Spanish, Japanese, Korean, Simplified Chinese, and tailored English for Singapore and India.
Apple is anticipated to unveil enhanced artificial intelligence functionalities in the future, featuring a ‘stronger Siri,’ as per Cook. He indicated that with the expanding user community of the iPhone 15 and iPhone 16, he foresees Apple’s intelligent technology becoming increasingly prevalent. He remarked, ‘Based on my own experience, once you begin utilizing these features, it’s hard to envision life without them.
