Apple sells $46 billion worth of iPhones over the summer as AI helps end slump

Apple snapped retired of a caller iPhone income slump during its summertime quarter

SAN FRANCISCO -- Apple snapped retired of a caller iPhone income slump during its summertime quarter, an early motion that its caller efforts to revive request for its marquee merchandise pinch an infusion of artificial intelligence are paying off.

Sales of nan iPhone totaled $46.22 cardinal for nan July-September period, a 6% summation from nan aforesaid clip past year, according to Apple’s fiscal fourth-quarter study released Thursday. That betterment reversed two consecutive year-over-year declines successful nan iPhone’s quarterly sales.

The iPhone boost helped Apple present full quarterly gross and profit that exceeded nan expert projections that sway investors, excluding a one-time complaint of $10.2 cardinal to relationship for a caller European Union tribunal decision that lumped nan Cupertino, California, institution pinch a immense measure for backmost taxes.

Apple earned $14.74 billion, aliases 97 cents per share, a 36% alteration from nan aforesaid clip past year. If not for nan one-time taxation hit, Apple said it would person earned $1.64 per stock — topping nan $1.60 per stock predicted by analysts, according to FactSet Research. Revenue roseate 6% from past twelvemonth to $94.93 billion, astir $400 cardinal much than analysts forecast.

But investors evidently were hoping for an moreover amended quarter. Apple's banal value slipped 1% successful extended trading aft nan numbers came out.

The results captured nan first fewer days that consumers were capable to bargain a new iPhone 16 line-up that included 4 different models designed to grip a assortment of AI wizardry that nan institution is trading arsenic “Apple Intelligence.” The branding is portion of Apple’s effort to separate its attack to AI from rivals specified arsenic Samsung and Google that sewage a caput commencement connected bringing nan exertion to smartphones.

Even though nan iPhone 16 was specifically built pinch AI successful mind, nan exertion didn’t go disposable until Apple released a free package update earlier this week that activated its first batch of technological tricks, including a characteristic designed to make its virtual adjunct Siri smarter, much versatile and much colorful. And those improvements are only disposable successful nan U.S. for now.

Apple plans to grow nan AI into different countries successful nan months ahead, arsenic good arsenic rotation retired different package updates that will inject moreover much of nan exertion successful nan iPhone 16 and 2 high-end iPhone 15 models that are besides equipped pinch nan typical machine chips needed for nan slick caller features.

Investors are betting that arsenic Apple’s AI becomes much broadly available, it will punctual a flurry of upgrades among nan hundreds of millions of consumers who are utilizing older iPhones that will look woefully outdated because they can’t grip nan latest technology.