Apple Focuses On AI To Overcome Sales Challenges In China

Apple's third-quarter performance exceeded expectations, with iPhone sales showing a smaller decline than anticipated. However, the company's China market remains a concern, experiencing a 6.5% drop in sales, though this is an improvement from the previous quarter, according to a report by Reuters.

Despite the overall decline in sales in China, Apple's stock experienced a close to 1% increase in after-hours trading. CFO Luca Maestri announced that sales of the iPhone, especially the iPhone 15 series, have exceeded expectations and are performing better than the iPhone 14 cycle.

The company is betting on artificial intelligence (AI) to drive future upgrades. Apple is set to unveil AI features in its upcoming iPhone 16 series, which is expected to launch in September. The new AI features, branded as Apple Intelligence, are designed to attract consumers to upgrade their devices. This push comes as rivals like Samsung have been quicker to adopt similar AI technologies.

Regulatory bodies, including the European Union and the U.S. Department of Justice, are scrutinizing Apple for antitrust concerns and market practices. Nevertheless, Apple has reported earnings per share of $1.40, exceeding Wall Street predictions, along with a 14.1% rise in revenue from its services segment.

Apple’s iPad sales surged by 23.7%, while wearables saw a slight decline of 2.3%. The company maintained its quarterly dividend and announced a substantial stock buyback program earlier this year.