San Francisco (United States) (AFP) – Apple on Thursday said it saw record-high earnings in the final three months of last year, with iPhone sales surging in greater China. The tech giant reported profit of $42.1 billion on revenue of $143.8 billion in the recently-ended quarter. The iPhone “had its best-ever quarter driven by unprecedented demand,” chief executive Tim Cook said on an earnings call.
Sales of iPhones grew around the world, climbing to $25.5 billion in the crucial Greater China market as compared to $18.5 billion during the same period a year earlier, according to Apple. Overall, iPhone sales brought in $85.2 billion in the quarter. Apple also saw revenue from services such as digital content and subscription entertainment hit a new quarterly high of $30 billion, a 14 percent jump from the same period a year earlier, Cook said. The number of Apple devices in use around the world has topped 2.5 billion, Apple reported.
Apple forecast that its revenue in the current quarter would be 13 percent to 16 percent more than it was in the same period last year. Cook warned that iPhone production is being constrained by tight supplies and rising prices of memory components and sophisticated chips used in the handsets. “We’re in a supply chase mode to meet the very high levels of customer demand,” Cook said. “At this point, it’s difficult to predict when supply and demand will balance.” Shares in the iPhone maker were up about one percent in after-market trades.
Apple’s stellar earnings validate “its strategy amid an industry in constant flux and reinforce its position atop the global smartphone market,” said Emarketer analyst Jacob Bourne. “Yet maintaining that dominance is perhaps more uncertain than ever, hinging on the right calls around pricing and developing the next generation of devices, particularly wearables and the anticipated foldable iPhone.”
All eyes will be on how Apple makes the most of its freshly announced partnership with Google to use Gemini artificial intelligence in its devices, according to Bourne. The company co-founded by Steve Jobs has been under pressure to show it is not being left behind when it comes to AI, with its potential to change how people engage with the internet and computers. Apple is largely perceived to have stumbled in efforts to roll out AI capabilities across its products.
In December, it announced that the head of its artificial intelligence team was stepping down. Apple and Google earlier this month announced a multi-year partnership that will see Apple’s next-generation artificial intelligence features, including its Siri assistant, be powered by Google’s Gemini technology. The collaboration marks a significant shift for Apple, which has traditionally developed its core technologies in-house. Cook said Apple will release a more personalized Siri digital assistant using the Google-provided technology.
Apple believes Google’s AI technology will enable the company to “unlock a lot of experiences and innovate in a key way,” Cook said on an earnings call. Meanwhile, the Financial Times on Thursday reported that Apple has bought Israel-based Q.ai, a startup specializing in reading facial expressions. The earnings figures came amid speculation that a successor to Cook is being groomed inside Apple, with head of hardware engineering John Ternus considered a top contender for the chief executive job.
© 2024 AFP
