Apple Triumphs with AI-Boosted iPhone 16 Launch

Apple surpassed Wall Street expectations in its fourth-quarter earnings, driven by robust early sales of the iPhone 16. The new phones feature innovative AI enhancements. Overall revenue reached $94.93 billion, with iPhone sales climbing 5.5%. Apple's AI strategy integrates features throughout its operating systems.

Apple Inc. exceeded Wall Street's financial expectations in its fiscal fourth quarter, thanks largely to the strong early sales of the iPhone 16. The latest model boasts advanced AI capabilities and was launched late in the quarter, leading Apple to report sales of $94.93 billion, beating the expected $94.58 billion. Earnings per share rose to $1.64, outpacing the predicted $1.60.

The iPhone, Apple's flagship product, saw sales jump by 5.5% to $46.22 billion, surpassing analysts' predictions of $45.47 billion. Other product lines, however, did not meet expectations. The fourth quarter, ending September 28, includes only a small window of iPhone 16 sales, which began on September 20. According to CEO Tim Cook, the iPhone 16's initial sales outpaced those of its predecessor, the iPhone 15.

The introduction of 'Apple Intelligence' features has clients downloading the operating system update at double last year's rate. As Apple prepares for its fiscal first quarter, which encompasses key holiday sales, all eyes are on its AI strategy. Unlike rivals, Apple infuses AI throughout its operating systems, enhancing features like email rewriting to improve user experience. Sales results from China and capital expenditures reflect strategic efforts amid intensified competition.

(With inputs from agencies.)