Apple shares dipped early Friday (Nov. 1) as investors remained uncertain about the prospects for the company’s rollout of artificial intelligence features.
Apple gave guidance Thursday (Oct. 31) for low- to mid-single-digit revenue growth in the current quarter, which was an outlook that fell short of the high end of analysts’ expectations of 7%, the Financial Times (FT) reported Friday.
The company’s revenue for the most recent quarter was up 6% year over year, which was slightly above analysts’ forecasts, according to the report.
Apple’s latest earnings report was closely watched by analysts looking for signs of whether the rollout of the company’s AI features, which it has dubbed Apple Intelligence, might help drive sales of Apple devices like iPhones, the report said.
The company began launching these features Monday (Oct. 28) with software updates for iPhone, iPad and Mac, per the report.
Apple Chief Financial Officer Luca Maestri told the FT that sales of the company’s latest iPhone outpaced those of its predecessor during its first eight days on the market; that customers were downloading the latest operating system at twice the rate they did for the previous one; and that more AI features are to be added by the end of the year.
During its Thursday earnings call, Apple outlined an AI strategy that includes December plans for ChatGPT integration and expanded language support for Apple Intelligence, PYMNTS reported Thursday.
Monday’s release of Apple Intelligence included features like AI-powered writing tools and photo features. Apple CEO Tim Cook said additional capabilities coming in December will include “more powerful writing tools, a new Visual Intelligence experience” and ChatGPT integration.
The December rollout represents the company’s latest attempt to compete in AI, where competitors like Microsoft, Google and OpenAI have already established a presence.
Analysts told PYMNTS Monday that Apple’s launch of its AI features could challenge the notion that the tech giant has fallen behind in the AI race.
Apple previewed the introduction of Apple Intelligence in June, making a grand entrance at a time when some observers said the company had arrived late to the AI party.
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