Apple’s CEO, Tim Cook, has announced the company’s substantial investment in artificial intelligence (AI), joining the growing trend in the tech industry. This declaration came on Thursday (August 3) as Apple reported its third consecutive quarter of declining sales and projected a similar performance in the current period, marking its most extended sales slump since 2016.
In the third fiscal quarter ending on July 1, Apple experienced a 1.4 percent decrease in sales, amounting to $81.8 billion, as per IBES data from Refinitiv. Nonetheless, the company still managed to make a profit of $19.9 billion during the quarter, surpassing analysts’ expectations.
Although iPhone sales were weaker than estimated by analysts, the company witnessed robust sales in its services segment, which includes Apple TV+, as well as an 8 percent year-over-year growth in sales in China, according to Reuters. Additionally, iPhone sales in India saw double-digit growth, although specific numbers were not disclosed by the executives.
During an interview with Reuters, Tim Cook emphasized Apple’s primary focus on generative artificial intelligence and mentioned significant research and development (R&D) efforts dedicated to this field. The company has been investing heavily in AI, similar to its technology rivals, Alphabet and Microsoft.
Cook highlighted, “We’ve been doing 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.”
Apple’s R&D spending has risen to approximately $22.61 billion for the fiscal year, an increase of about $3.12 billion compared to the previous year.
Looking ahead, Apple expects a gross profit margin of 44 percent to 45 percent in the September quarter, exceeding analyst expectations of 43.4 percent, according to Refinitiv data. While the company anticipates growth in its services segment, sales of iPad and Mac are projected to decline by “double digits,” as stated by Apple’s Chief Financial Officer, Luca Maestri, in the Reuters interview.
Post Your Comments