Apple's iPhone Sales Dip amid AI Push
Apple reported a slight decline in iPhone sales during the holiday quarter, signaling a cautious start as the tech giant races to catch up on AI adoption.
Key Highlights:
* 1% revenue drop for iPhone compared to previous year's holiday period
* AI technology still limited in availability outside the US
* Apple's overall revenue increased by 4% to $124.3 billion
* Continued loss of market share in China, with revenue declining by 11%
* Doubts arise about AI's immediate impact on iPhone growth
Despite initial enthusiasm, the lack of significant iPhone sales growth has tempered investor optimism. Analysts had anticipated that AI integration would drive upgrades, leading to a 30% surge in Apple's stock price last year. However, recent underperformance has caused a 5% stock decline in January.
Apple's AI investments have been more cautious compared to other tech giants like Microsoft and Google. This restraint may prove advantageous if DeepSeek's recent cost-effective AI breakthroughs gain traction.
Meanwhile, Apple's services division remains a strong performer, generating $26.3 billion in the quarter. The division's reliance on Google as the default search engine on Apple devices faces scrutiny due to potential antitrust actions.