Sales of Apple iPhones declined at the end of last year despite the introduction of new artificial intelligence (AI) features by the tech company.
Apple CEO Tim Cook mentioned that these new features contributed to increased sales in countries like the US. However, overall iPhone sales decreased by approximately 1% compared to the previous year, reaching $69.1 billion (£55 billion).
The company faces various challenges, including a sales decrease in China and the potential impact of tariffs proposed by President Donald Trump on US sales. Trump has proposed tariffs of up to 60% on Chinese-manufactured products, which could affect Apple, a significant portion of whose manufacturing occurs in China.
The specifics and timing of these tariff plans, which would impose additional taxes on imports to the US, remain uncertain.
During a meeting with investors, Mr. Cook stated that Apple is closely monitoring the situation. Apple has been incrementally incorporating AI features into its products, starting in the US last year. Investors hope this move will stimulate sales, which have slowed as customers extend the lifespan of their devices.
Mr. Cook announced that Apple plans to expand the availability of AI features to more languages by April. However, the feature was temporarily halted after receiving criticism for over a week.
Additionally, Mr. Cook mentioned that Apple observed a record number of iPhone upgrades from existing owners. The company reported a 4% increase in overall sales, reaching $124.3 billion, driven by growth in computer sales and the services division, encompassing Apple TV, Apple News, and Apple Pay.
Profits also rose by 7% year-on-year to $36.3 billion.
Jacob Bourne, an analyst from Emarketer, commented on the need for Apple to hasten its product release schedule and explore new innovations to sustain its competitive position.
The results demonstrate Apple's execution capabilities, but the upcoming quarters will determine whether the company can strike a balance between its cautious strategy and meeting the market's demand for AI advancements, he remarked.