Apple has just announced its earnings for the crucial holiday quarter, marking the company’s most successful quarter to date. However, iPhone sales fell short of expectations, largely due to challenges in the Chinese market. Tim Cook, the CEO, emphasized that iPhone 16 sales performed exceptionally well in regions where Apple Intelligence is operational.
Per Cook, iPhone 16 outperformed in regions with AI capability
The ongoing debate continues about how much consumers value Apple Intelligence.
Initial reactions to the rollout of the AI and iPhone 16 were positive, but will they translate into significant upgrades?
According to CEO Tim Cook in an interview with CNBC, it appears the answer leans towards yes.
Tim Cook informed CNBC’s Steve Kovach that iPhone sales saw an increase in countries where Apple Intelligence is accessible. Currently, this feature is available only in a limited number of English-speaking nations and is not offered in China or for Chinese users.
“During the December quarter, we noticed that in markets where we launched Apple Intelligence, the year-over-year performance of the iPhone 16 series was better than in markets where the feature was not introduced,” Cook stated.
As it stands, Apple Intelligence is not available in China. Additionally, it’s also not accessible on iPhones or iPads within the EU, though that is set to change with the arrival of iOS 18.4 in April.
China, however, has yet to provide a release date for the AI feature, which negatively impacted its iPhone 16 sales.
Cook mentioned to CNBC that three factors contributed to the company’s performance in China. He indicated that half of the 11.1% sales dip was attributed to changes in “channel inventory,” the absence of Apple Intelligence in the area, and the subsequent national subsidy introduced by China that could boost some Apple product sales.
This subsidy suggests a potential increase in iPhone sales in the upcoming quarter. However, if Cook’s claim regarding AI’s influence on iPhone sales holds true, any growth may be temporary unless Apple Intelligence is announced for China.
What are your thoughts on Cook’s association between iPhone 16 sales and Apple Intelligence? Share your opinions in the comments below.
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