Apple’s sales have rebounded this spring, with a 5% year-on-year increase in revenue to $85.8 billion over the three months to June. This growth comes despite weakness in China and a dip in iPhone sales, delivering some good news to jittery financial markets.
The tech giant’s AI-powered software improvements are convincing customers to upgrade their devices, with new features like “Apple Intelligence” released to developers in the US. These features make it easier for iPhone users to record and transcribe phone conversations, generate personalized emojis while messaging, and interact more conversationally with the company’s voice assistant, Siri.
However, the tech sector faces uncertainty due to AI-driven market changes. Intel’s sales fell 1% year-on-year, and Amazon’s sales growth slowed down, with shares in Intel plunging by more than 19% and Amazon shares down more than 4% in after-hours trade.
Apple remains optimistic about AI’s possibilities and will continue to invest significantly in the technology, with expectations of continued growth in the months ahead. The company reported an all-time record in revenue from its services division, which includes offerings like Apple Pay and Apple News.
While sales of iPhones slipped 1% over the April to June period, this drop was outweighed by increased sales of Macs and iPads. Apple’s boss, Tim Cook, said the new AI-powered features would provide “another compelling reason for an upgrade”.
The company’s growth comes as the Dow Jones Industrial Average dropped 1.2%, the S&P 500 slipped almost 1.4%, and the Nasdaq dropped 2.3%. Stock markets in Asia also dropped, with Japan’s Nikkei down by more than 5% and the Hang Seng in Hong Kong 2.3% lower.
