Apple’s spring sales have rebounded, delivering a boost to anxious financial markets despite hurdles in China and a dip in iPhone sales.
The tech titan reported $85.8 billion in revenue for the three months ending in June, a 5% year-on-year increase, marking a return to growth after a slump at the start of 2024.
This positive news arrived as U.S. stock indexes closed lower, with big names like Amazon facing after-hours sell-offs.
Intel shares nosedived over 19%, driven by a sales slump and a drastic cost-cutting plan involving over 15,000 job cuts.
Amazon’s shares also fell by more than 4%, despite a 10% rise in sales to $148 billion, signaling a slowdown from the previous quarter and forecasting further weakening.
The Dow Jones Industrial Average dropped 1.2%, the S&P 500 slipped nearly 1.4%, and the Nasdaq fell 2.3%. Friday saw similar declines in Asian stocks, with Japan’s Nikkei plummeting 5.8%.
AI business investments have recently stirred markets, as investors fret over their high costs and penalize firms lagging in the AI race.
Intel, struggling against rivals like Nvidia known for powerful AI chips, saw sales fall 1% year-on-year for the June quarter and issued a bleak forecast for the year’s second half.
CEO Pat Gelsinger acknowledged the need for “bolder actions” and operational changes to address revenue shortfalls and leverage AI trends.
Conversely, Apple is poised to benefit from AI advancements, incorporating AI-powered features into its software, such as “Apple Intelligence.”
These features include easier phone conversation recording, personalized emojis, and enhanced Siri interactions, rolling out to newer devices later this year.
CEO Tim Cook emphasized AI’s potential and Apple’s commitment to significant investment in the technology.
During the April to June period, iPhone sales slipped 1%, but increased sales of Macs and iPads offset this decline. Additionally, Apple’s services division, including Apple Pay and Apple News, achieved record revenue.
Cook expressed optimism for continued growth, highlighting AI as a key driver for future upgrades.
Apple’s resilience in adapting to market shifts underscores its strategic prowess, balancing innovation with market demands to stay ahead in the tech landscape.
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