Apple's revenues increase 4 percent despite the slowdown of iPhone sales

After Apple announced the artificial intelligence characteristics for iPhones last year, the company's actions fired in advance that new skills would provide a shake to an obsolete business. But a boom in sales has not materialized.

On Thursday, the technology giant said it sold iPhones worth $ 69.14 billion in its most recent quarter, a 0.8 percent decrease compared to the previous year and 3.5 percent below the quarterly sales record that reported in principle of 2022. Sales of applications and services of the company, as well as Apple Music and Apple TV+, were active, helping to compensate for the modest performance of their iPhone business.

Apple's quarterly revenues increased 4 percent to $ 124.3 billion during the three months that ended in December. Its gain increased 7 percent to $ 36.33 billion, bouncing from the anterior quarter when it paid a multimillionaire fine to European regulators.

The results were just below the expectations of Wall Street analysts for $ 124.38 billion in sales, but exceeded the projections of $ 35.62 billion in earnings. The company said it expected income to increase in the current quarter, which ends in March. The shares increased 3.5 percent in trade off hours due to the company's encouraging sales perspective.

Despite greatly promoting its new ai technology, Apple launched an iPhone in September without its exclusive point of sale: an ai so -called Apple Intelligence system. The characteristics of ai were available approximately one month later in the United States and finally expanded to other English -speaking countries.

Apple has not yet launched Apple Intelligence in China, its second most important market, weakening the attraction of the iPhone there. The company's participation in smartphone sales in China fell 2.4 percentage points last year to 15.5 percent, according to Counterpoint Research, a market research firm. Apple, who plans that its ai offer is available in additional languages ​​in April, said sales in China fell 11 percent to $ 18.51 billion.

“The markets where we implemented Apple Intelligence had a better performance of a year after year than the markets where we had not done it,” said Tim Cook, Executive Director of Apple, during a call with analysts.

In countries where Apple's intelligence is available, some of the characteristics have disappointed customers. This month, the company said it would disable its ai system to add and summarize news notifications because it was misrepresented media reports.

“There was so much optimism that they had the golden egg with the iPhone 16, but quickly forward until today, and it seems that the carpet has taken off from under them,” said David Wagner, chief of equity of Aptus Capital Advisors, a company Investment in Alabama. “There has been one absorption of slower.”

In addition to trying to revitalize its iPhone business, Apple faces the possibility of headaches from the fresh supply chain. President Trump has threatened to impose additional tariffs on China's goods, where Apple makes most of its iPhones and on products sent from countries, including Vietnam, where Apple had moved part of its manufacture during the first Trump administration. Any levies would reduce Apple's profits or force prices.

Cook has built a personal relationship with Mr. Trump over the years. He donated $ 1 million to Mr. Trump's opening fund and sat behind Trump at the inauguration along with other technological leaders, including Mark Zuckerberg and Jeff Bezos.

When asked during a call with analysts about what the new administration could mean for the company, Mr. Cook said: “We are monitoring the situation and we have nothing more to add.”

Services, which include applications sales, Apple TV+ and Apple Pay, continue to be the highest performance of Apple's business. The company is receiving an income cut of more than one billion subscriptions sold on iPhones and iPads. Sales of services in the quarter increased 14 percent to $ 26.34 billion.

A large percentage of services for services comes from Google, which is worth being the search engine on Apple devices. Last year, a federal judge ruled that Google is a monopolist to pay those fees, and the Department of Justice has asked the court to remedy it by forcing him to stop. Apple, who wants to maintain the $ 20 billion that Google raises annually, sought to intervene in the case but was denied.

Apple reported that sales increased for two of their other key products, the iPad and Mac, but fell into wearables such as Apple Watch and Airpods. Total company's product revenues increased 1.6 percent to $ 97.96 billion.