Apple's AI Strategy: A Calculated Approach Pays Off

Apple's executives predict strong sales growth as the company introduces AI features, despite a slide in iPhone sales. The cautious approach to AI is helping its hardware sales. The recent fiscal quarter saw boosted sales of iPads and Macs, although challenges persist in China.

In a move to recover from a dip in iPhone sales, Apple executives forecast a promising sales trajectory, linked to the introduction of AI features. The tech giant reported slightly below Wall Street estimates for its holiday quarter, largely due to missing AI enhancements, which are pivotal for its new devices.

CEO Tim Cook announced that AI capabilities will reach European users by spring, adding a 3.14% rise in shares post-market. Despite a restrained deployment of AI, contrasting peers like Microsoft, Apple's strategic focus on enhancing hardware sales seems fruitful, as noted by a rival's recent AI launch.

While obstacles in China persist, boosted sales of iPads and Macs overshadowed expectations, aided by cutting-edge chips. With sales expectations rosier for the current quarter amid a 2.5% currency exchange impact, Apple's fiscal figures saw a minor triumph despite iPhone and China-related hurdles.

(With inputs from agencies.)