Apple has released its earnings for the critical holiday quarter. It marked Apple’s most successful quarter to date, although iPhone sales fell short of expectations, particularly due to performance in China. According to CEO Tim Cook, a significant observation was that sales of the iPhone 16 were particularly strong in regions where Apple Intelligence was available.
According to Cook, iPhone 16 performed better in regions with AI capabilities
There has been extensive discussion about whether consumers genuinely value Apple Intelligence.
The rollout of the company’s AI and iPhone 16 was met with initial enthusiasm, but the real question remains: will it lead to increased upgrades?
According to Tim Cook in an interview with CNBC, the answer appears to be affirmative.
Apple CEO Tim Cook stated to CNBC’s Steve Kovach that iPhone sales were more robust in countries where Apple Intelligence was accessible. At present, the software is only available in select English-speaking regions and is not available in China or in the Chinese language.
“During the December quarter, we noticed that in markets where we had introduced Apple Intelligence, the year-over-year sales performance of the iPhone 16 lineup was stronger compared to markets where Apple Intelligence had not been launched,” Cook remarked.
As of now, Apple Intelligence is not available in China at all. Additionally, it is inaccessible on iPhones or iPads in the EU; however, that will change with the release of iOS 18.4 in April.
China, unfortunately, does not have a set release date for AI either, leading to a decline in iPhone 16 sales there.
Cook indicated to CNBC that three elements contributed to the company’s performance in China. He explained that half of the 11.1% decline stemmed from a shift in “channel inventory,” the absence of Apple Intelligence in the region, and a national subsidy issued by China post-quarter that was meant to boost sales of Apple products.
This last point suggests there could be a lift in iPhone sales in the upcoming quarter. However, if Cook’s assertion regarding AI positively influencing iPhone sales holds true, growth may be temporary unless there’s an announcement regarding Apple Intelligence’s launch in China.
What are your thoughts on Cook’s connection between iPhone 16 sales and Apple Intelligence? Share your opinions in the comments.
Top iPhone Accessories
: We utilize income-generating affiliate links. More.
