News Desk
Apple CEO Tim Cook announced the company’s substantial investment in artificial intelligence (AI) on Thursday, alongside its third consecutive quarter of declining revenues, marking the longest sales slump since 2016.
In the fiscal third quarter ending on July 1, Apple’s sales fell 1.4% to $81.8 billion. However, the company’s profit of $19.9 billion exceeded analysts’ expectations. While iPhone sales slightly missed estimates, robust sales in the services segment, including Apple TV+, and an 8% year-over-year growth in China helped offset the decline.
Apple’s stock remained steady in after-hours trading following the release of the results.
Tim Cook informed Reuters that the increased research and development spending was driven, in part, by work on generative artificial intelligence, an area where tech giants Alphabet and Microsoft have also been investing heavily. Cook emphasized Apple’s commitment to responsible advancement of products using AI technologies to enhance people’s lives.
The company’s research and development spending reached $22.61 billion for the fiscal year, a $3.12 billion increase compared to the previous year.
In related news, Amazon reported better-than-expected results for the second quarter, with sales increasing 11% to $134.4 billion, surpassing the estimated $131.5 billion. Amazon’s quarterly profit of $6.7 billion was nearly double the analysts’ expectations. The company anticipates further revenue growth in the coming months, citing Prime Day as one of its most successful sales days ever during last month’s marketing event for loyalty shoppers.
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