In summary
- On Thursday, Apple CEO Tim Cook announced a new dawn for the company with the launch of generative AI tools built into its flagship products.
- Apple shares fell 1.8% to $225.91 at the close and an additional 1.8% to $221.90 in after-hours trading, according to data from Google Finance.
- Apple reported $94.9 billion in sales for the quarter, up 6% year over year, but profits fell 35.9% to $14.7 billion due to a court ruling in Ireland.
On Thursday, Apple CEO Tim Cook announced a new dawn for the Cupertino, California-based company, following the launch this week of its suite of generative AI tools built into its flagship products.
“This is just the beginning of what we believe generative AI can do, and I couldn’t be more excited for what’s to come,” Cook said during the call. However, investors were not convinced.
Apple shares fell 1.8% to $225.91 at the close. Shares have fallen further 1.8% to $221.90 in after-hours trading, according to data from Google Finance. This came as results showed modest increases in the company’s sales for the year.
Apple reported $94.9 billion in sales for the quarter, up 6% year-over-year, of which $46.2 billion came from iPhone sales.
The company’s profits fell 35.9% from the same period last year to $14.7 billion, mainly due to a $14 billion headwind in back taxes in Ireland following a court ruling in September.
Included in Monday’s iOS 18.1 update, Apple Intelligence allows users to summarize and rewrite text, search their photo library using photo descriptions, and transcribe and summarize phone calls in real time, among other features.
Early reviews were uninteresting, with Wired calling the experience “flat” and the New York Times concluding that “the highly touted AI-transformed future still seems a ways off.” Axios said the product offered “only modest improvements.”
On Thursday’s call, Cook noted that additional features will be introduced in December, including the integration of ChatGPT and Visual Intelligence, which allows users to search for information directly from their camera app. It will also be given non-US English capabilities in December and foreign language capabilities in April.
Cook did not respond directly when asked if Apple Intelligence had boosted iPhone sales since its launch earlier this week. However, he noted that iOS 18.1 was adopted twice as fast as iOS 17.1 during the same quarter last year.
“We are getting a lot of positive feedback from developers and customers,” he said.
Several tech giants, including Google and Microsoft, have announced plans to incorporate AI models into their products this year as competition in the sector intensifies. Both companies reported better-than-expected results earlier this week.
Amazon also announced earnings this afternoon, beating analyst estimates. CEO Andy Jassy said the credit was due in part to the company’s investments in artificial intelligence, noting that the company’s AI business is already growing at a “triple-digit percentage, year over year.”
Edited by Sebastian Sinclair
Generally Intelligent Newsletter
A weekly AI journey narrated by Gen, a generative AI model.
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
Disclaimer: Please note that the information provided on this page is for News purposes only and should not be considered investment or trading advice. ©Crypto.keynoteusa.com strongly recommends that you conduct independent research and/or consult with a qualified professional before making any investment decisions.
