Apple Reports Record Earnings Despite a Dip in iPhone Revenue
Apple to Invest $500B in U.S. Expansion, Creating 20,000 Jobs
Apple has once again reported record-breaking earnings for its latest holiday quarter, continuing its streak of strong financial performance. CEO Tim Cook announced, “Today Apple is reporting our best quarter ever, with revenue of $124.3 billion, up four percent from a year ago.” The company saw growth in its Mac, iPad, and services divisions, contributing to this achievement.
However, despite the overall revenue increase, iPhone sales slightly declined compared to the previous year. This suggests that Apple Intelligence, the company’s AI-powered suite of features, has yet to become a major factor in driving iPhone upgrades. The introduction of the new Camera Control button also doesn’t seem to have significantly influenced sales.
In an interview with CNBC, Cook dismissed concerns that Apple Intelligence isn't compelling enough to boost iPhone sales. He explained, “During the December quarter, we saw that in markets where we had rolled out Apple Intelligence, the year-over-year performance on the iPhone 16 family was stronger than those markets where we had not rolled out Apple Intelligence.” This statement suggests that the new AI features may have influenced upgrades in select regions.
The iPhone 16 standard models have also been praised for offering excellent value this year. This could explain the slight drop in revenue if fewer customers opted for the Pro variants, which are typically more expensive.
Apple’s AI Expansion and Product Performance
Apple has taken an incremental approach in rolling out its AI-powered tools, only recently enabling them by default with the iOS 18.3 update. Cook reaffirmed that Apple Intelligence will be available in more languages starting in April. While the AI features have proven useful and convenient, they have yet to deliver a truly transformative experience. Many users are also eagerly awaiting Siri’s promised improvements.
The holiday quarter is Apple’s most crucial period, as it includes the peak shopping season and provides a clear view of the demand for the latest iPhone models. The company also introduced new Macs, including a redesigned Mac Mini and updated MacBook Pros. Meanwhile, Apple’s wearables division, which includes the Apple Watch and AirPods, saw a slight decline in revenue compared to the same quarter last year.
Despite the dip in iPhone sales, Apple’s overall performance remains strong, proving once again that its diverse product lineup continues to drive revenue growth.