Apple’s revenue increases by 4 percent despite slowing the sales of iPhone
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After Apple unveiled the Artificial Intelligence features for iPhones last year, the company’s stock expectation increased that the new capabilities would give a shock to a stale business. But there is not a bounce in sales.
On Thursday, the Tech giant said he sold iPhone worth $ 69.14 billion in his most recent quarter, a decrease of 0.8 percent from a year ago and the quarter below sales records in early 2022. Like the company’s sales and sales, Apple Music and Apple TV+, were helping to offset the minor performance of their iPhone business.
Apple’s quarterly revenue rose by 4 percent to $ 124.3 billion during the three months ended in December. Its profit rose 7 percent to $ 36.33 billion, overturning from the previous quarter when he paid a multivilian-dollar fine to European regulators.
The results decreased by expectations of $ 124.38 billion in the sales of Wall Street analysts, but the profit exceeded estimates of $ 35.62 billion. The company said it is expected to increase revenue in the current quarter, which ends in March. The shares increased by 3.5 percent in the hour trading due to the company’s encouraging sales approach.
Despite promoting its new AI technology, Apple released an iPhone without its signature selling point in September: APLE Intellation AI System. The features of AI became available in the United States about a month later and eventually expanded to other English -speaking countries.
Apple has not yet released Apple Intellity in China, its second most important market, which has weakened the appeal of the iPhone. According to the market research firm Counterpoint Research, the share of smartphones in China fell 2.4 percentage points to 15.5 percent last year. Apple, which plans to provide its AI offering in additional languages in April, said sales in China fell 11 percent to $ 18.51 billion.
During a call with analysts, Apple Cook said, “Where we rolled out Apple Intelligence, it performed better on a year-away basis than the markets where we did not.”
In countries where Apple Intelligence is available, some characteristics have disappointed customers. This month, the company said that it would disable its AI system to collect news information and submit them abbreviated as it was incorrectly presenting media reports.
David Wagner, the head of the equity at the Aptus Capital Advisors, said, “There was so much optimism that he had a golden egg with the iPhone 16, but fast for today, and it seems that the rug has been taken out of him.” An investment firm in Alabama. “A slow AI has risen.”
In addition to trying to revive your iPhone business, Apple is facing the possibility of fresh supply chain headache. President Trump has threatened to put additional tariffs on goods from China, where Apple creates most of its iphones, and products sent from countries including Vietnam, where Apple had previously transferred some of his manufacturing during the Trump administration. Any levy will cut Apple’s profits or force to increase prices.
Mr. Cook has formed a personal relationship with Mr. Trump for years. He donated $ 1 million to Mr. Trump’s inaugural fund and sat behind Mr. Trump at the inauguration with other technical leaders including Mark Zuckerberg and Jeff Bezos.
During a call with analysts, when asked what the new administration could mean for the company, Mr. Cook said, “We are monitoring the situation and nothing else to add.”
Services, including the sale of apps, Apple TV+ and Apple Pay, continues the strongest performing section of Apple’s business. The company is cutting revenue from more than one billion membership sold in iPhones and iPads. Services sales increased by 14 percent to $ 26.34 billion in the quarter.
A large percentage of services comes from Google, which pays the search engine on Apple devices. Last year, a federal judge ruled that Google is a monopoly to pay those fees, and the justice department asked the court to take measures that it has been forced to stop it. Apple, which wants to keep $ 20 billion collected every year from Google, demands intervention in the case, but was rejected.
Apple reported that sales increased to its two other major products, iPads and Mac, but fell for wearballs such as Apple Watch and AirPods. The company’s total product revenue rose by 1.6 percent to $ 97.96 billion.
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