Apple iPhone Sales Drop Amid AI Rollout

Apple Inc. faced a downturn in iPhone sales at the close of the last year, following the introduction of new artificial intelligence (AI) features. Despite high expectations, the AI updates received a lukewarm response from consumers, contributing to the decline in sales figures.

The tech giant is now evaluating the market feedback and strategising future enhancements to regain its momentum.

According to CEO Tim Cook, the additional features increased sales in the US and other countries where they were offered.

However, global iPhone sales decreased by roughly 1% from the previous year to $69.1 billion (£55 billion).

A decline in sales in China and the potential impact of tariffs imposed by President Donald Trump on US sales are among the major issues the company is facing.

He has demanded tariffs of up to 60% on goods manufactured in China, where Apple manufactures a large portion of its goods.

However, it is still very unclear when and to what extent such plans—which would impose a new tax on imports entering the US—will be implemented.

On Thursday, Mr Cook informed investors that the business was keeping an eye on the situation.

Beginning last year in the US, Apple has been progressively adding AI capabilities to its devices.

As consumers keep their phones and other devices longer, sales have dropped. Investors are hopeful this will boost sales again.

According to Mr Cook, Apple plans to release the AI functionality in additional languages in April.

But there has been some disagreement over the features. Earlier this month, the AI’s news roundup alerts were criticised for repeatedly misrepresenting news headlines, including BBC ones.

In the end, the feature was suspended after more than a week of criticism.

According to Mr Cook, Apple witnessed a record number of individuals who previously had older iPhones buying new models on Thursday.

A spike in computer sales and robust growth in its services division, which includes Apple TV, Apple News, and Apple Pay, helped the company’s overall sales increase 4% to $124.3 billion.

Earnings increased 7% annually to $36.3 billion.

To keep its lead, Apple will need to accelerate the rollout and begin exploring new product categories, according to emarketer analyst Jacob Bourne.

“The results show Apple can still execute, but the next few quarters will test whether it can balance its cautious approach with the market’s hunger for AI innovation,” he said.

BBC