Apple emerges from recent sales slump as it prepares to make the leap into the AI ​​craze

Apple emerged from a prolonged sales slump during the most recent quarter as the pioneering company prepares to join the artificial intelligence craze with an arsenal of new technologies that are expected to boost demand for its next iPhone.

Fiscal third-quarter results announced Thursday covered an April-June period that is typically slow for Apple as its loyal customer base awaits the next version of the iPhone, traditionally released just after Labor Day.

Even so, Apple increased its sales year-on-year – a welcome reversal of fortunes in the wake of five consecutive quarters of revenue declines year after year.

This time, Apple’s revenue increased 5% year-on-year to $85.78 billion – a number that surpassed analysts’ projections. The Cupertino, Calif., company earned $21.45 billion, or $1.40 per share, an 8% increase over the same period last year. Profit also exceeded analysts’ forecasts.

Apple shares rose slightly in extended trading following the release of the report.

Sales of the iPhone – Apple’s flagship product – remained in decline, dropping 1% from last year to $39.3 billion. This drop wasn’t as bad as the January-March period, when iPhone sales plummeted 10% compared to last year, and now the product appears headed toward a major recovery.

That’s because Apple is planning to launch a variety of artificial intelligence features which should make your Siri virtual assistant smarter and also perform a variety of useful and fun tasks, including helping you compose texts and even creating unique emojis on demand. The AI ​​tools will be included in a free software update expected in the fall, but most of the features will only work on iPhones with a special chip that has so far only been available in two premium models Apple released last year.

The next model, the iPhone 16, is expected to be equipped with the AI ​​chip – a factor that analysts believe will encourage consumers who hold on to their older devices to spend on upgrades so they can take advantage of new features. That expectation is the main reason why Apple’s share price has risen 13% since the company introduced its AI tools in early June – a rise that has created about $400 billion in shareholder wealth so far. .