Apple's Strong Profits Despite iPhone Slump: AI and Competition Impact
Apple surpassed Wall Street profit expectations, but encountered iPhone sales and China revenue challenges due to Chinese competition and AI feature delays. Strong iPad and Mac sales supported overall results, driven by new chip upgrades. Apple's AI features, branded 'Apple Intelligence,' are gradually rolling out, facing regulatory hurdles in China.
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Apple has surprised Wall Street with better-than-expected profits, even as iPhone sales took a hit amid intense competition in China and a delayed rollout of new AI features. The tech giant's quarterly earnings were buoyed by stronger sales of iPads and Macs, aided by new chip developments.
The lack of AI capabilities contributed to a slight drop in iPhone sales, which fell short of analysts' forecasts. China saw a notable decline in sales, attributed to local brand preferences and inventory adjustments, leading to a 0.5% dip in Apple shares post-trading.
Despite the downturn in China, Apple's total sales exceeded targets, with new AI capabilities, branded 'Apple Intelligence,' showing promise in markets where they have launched. However, the company is facing challenges bringing these features to China due to regulatory barriers.
(With inputs from agencies.)