SAN FRANCISCO — Apple has demonstrated a recovery in iPhone sales during its summer quarter, signaling that the company’s initiatives to rejuvenate interest in its flagship device, particularly through the integration of artificial intelligence, are beginning to yield positive results.
The sales figures for iPhone reached $46.22 billion in the period from July to September, reflecting a 6% increase compared to the same quarter last year, as outlined in Apple’s fiscal fourth-quarter report. This rise marks a turnaround after two consecutive quarters of decline in year-over-year sales for the iPhone.
The boost in iPhone sales contributed to Apple’s total quarterly revenue and profit exceeding analysts’ forecasts, despite a significant one-time charge of $10.2 billion related to a European Union court ruling imposing substantial back taxes on the company. For the quarter, Apple reported earnings of $14.74 billion, equating to 97 cents per share, which is a 36% drop from the prior year. However, if it weren’t for the tax charge, Apple stated that its earnings would have risen to $1.64 per share, which would have surpassed the analyst expectation of $1.60 per share, according to assessments by FactSet Research. The company’s revenue increased by 6% year-over-year, reaching $94.93 billion—approximately $400 million more than anticipated by analysts.
Despite these positive developments, investor sentiment appeared to be cautious, with Apple’s stock experiencing a 1% decline in after-hours trading once the financial results were released.
The reported results included the first few days when consumers could purchase the new iPhone 16 lineup, which features four different models equipped to leverage various artificial intelligence capabilities that Apple markets under the term “Apple Intelligence.” This branding effort aims to set Apple’s AI strategy apart from competitors like Samsung and Google, who have already made significant advancements in incorporating AI into their smartphones.
While the iPhone 16 was specifically designed to optimize AI functionality, the new features were not accessible until a recent free software update activated them. This update introduced enhancements to the virtual assistant Siri, making it more adept and versatile. However, these upgrades are currently available only in the United States.
Apple has plans to expand its AI capabilities to other countries in the coming months and will also release additional software updates that will further enhance the technological features available in the iPhone 16 and two premium models of the iPhone 15, both of which are equipped with the advanced internal chips necessary for these cutting-edge functionalities.
Investors are optimistic that as Apple’s AI offerings become more widely accessible, they will drive a wave of upgrades among the vast number of consumers still using older iPhone models, which may soon appear outdated in comparison to the capabilities of the latest devices.