Apple's Positive Forecast Boosts Share Value Amidst AI Challenges

Apple shares increased by 2% following a positive forecast for iPhone sales, despite competitive pressures and minimal AI features in China. The optimistic outlook, alongside recent AI updates, contributed to investor confidence. However, Apple's performance in China remains a concern due to strong domestic competition.

Apple shares saw a 2% rise on Friday, fueled by a promising forecast for an iPhone sales resurgence, despite facing significant competition and limited AI functionalities in China.

The optimistic outlook could add over $81 billion to Apple's market value of $3.573 trillion if the gains persist. Investors were initially worried about iPhone demand due to slow AI feature rollouts, but the company expects revenue to grow in the low- to mid-single digits this quarter.

Although Apple has been cautious with its AI investments compared to rivals Microsoft and Alphabet, its focus on device sales has reassured investors. However, the major market of China poses challenges as Apple struggles to introduce AI features amid stiff competition from local brands.

(With inputs from agencies.)