On Thursday, Apple reported that its third-quarter iPhone earnings were stronger than expected due to bets on artificial intelligence (AI) despite weak sales in China.
The company’s shares went up by almost 1.00% in extended trading, surpassing other tech stocks that were broadly lower.
According to analysts, the Cupertino-based giant is anticipated to release the most prominent software upgrade for iPhones. These upgrades will be integrated with AI features and will arrive when rivals, such as Samsung, are quicker in launching similar services.
In its fiscal fourth quarter, Apple mentioned that it would reach a level close to the 4.90% increase in April-June, beating experts’ estimates. The smartphone’s sales were better in the third quarter, dropping by just 0.90%, lower than the expected 2.20% decline.
Moreover, Chief Financial Officer Luca Maestri said that the iPhone 15 has been successful since its launch. It significantly beat the previous cycle’s iPhone 14.
On the other hand, sales in China, the third largest Apple market, declined 6.50%. However, it improved by 8.10% from the previous period.
Meanwhile, analysts hope for a major upgrade for the iPhone 16 series, which will likely be available in September. In its developer conference, Apple revealed a line of AI products and services called Apple Intelligence.
US Judge Asked by Apple to Dismiss Lawsuit
Apple requested a US judge to dismiss a lawsuit by federal and state antitrust regulators regarding the illegal monopolization of the smartphone market. According to the iOS maker, the judge’s action might cause them to redesign their popular iPhone.
The Justice Department accused the company of imposing contractual restrictions and withholding vital access from developers.
It responded that reasonably limiting third-party access to its system is less severe than anti-competitive behavior. Apple added that forcing to disseminate its technology with rivals would ease innovations.
