On Thursday (Aug 3), Apple CEO Tim Cook revealed the tech giant’s strong commitment to artificial intelligence (AI) as the company reported declining sales figures.
Despite recording its third consecutive quarter of falling sales, Apple remains resolute in its dedication to advancing AI technology.
In the third fiscal quarter ending July 1, Apple experienced a 1.4 percent decrease in sales, amounting to $81.8 billion, according to data from Refinitiv’s IBES.
Nonetheless, the company managed to achieve a profit of $19.9 billion over the quarter, exceeding analyst expectations.
Also Read: Why Hyundai And Kia Are Recalling 92,000 US Vehicles Over Fire Risk
The slowdown in iPhone sales was counterbalanced by robust performance in the services segment, which includes Apple TV+.
Additionally, sales in China displayed an impressive 8 percent year-on-year growth, as reported by Reuters. In India, iPhone sales saw double-digit growth, although the exact figures were not disclosed by the executives.
Speaking to Reuters, Tim Cook emphasized Apple’s primary focus on generative artificial intelligence. He highlighted the company’s significant investments in research and development (R&D) to advance AI technologies.
Apple’s dedication to generative AI aligns with the major spending trends witnessed in the tech industry, where rivals Alphabet and Microsoft have also poured resources into this field.
“We’ve been conducting research across a wide range of AI technologies, including generative AI, for years. We’re going to continue investing and innovating and responsibly advancing our products with these technologies to help enrich people’s lives,” Cook stated.
Also Read: SEC Asks Coinbase To Restrict Trading To Bitcoin Amid Regulatory Turmoil
He acknowledged that Apple’s financial reports reflect their substantial investments in AI research and development.
Apple’s R&D spending has surged to approximately $22.61 billion for the current fiscal year, marking an increase of $3.12 billion compared to the previous year.
Despite the declining sales numbers, Apple has projected a gross profit margin of 44 percent to 45 percent in the September quarter, surpassing analyst expectations of 43.4 percent, according to Refinitiv data.
While the company foresees growth in its services segment, Apple’s Chief Financial Officer, Luca Maestri, indicated that iPad and Mac sales are expected to decline by “double digits,” as reported by Reuters.
Email your news TIPS to Editor@Kahawatungu.com — this is our only official communication channel
