Apple has experienced a notable resurgence in iPhone sales, generating $46.22 billion in revenue during the summer quarter from July to September 2024. This represents a 6% increase compared to the same period last year, reversing two years of declining sales for its flagship product.
The uptick in sales is largely credited to the introduction of the new iPhone 16 lineup, which incorporates advanced artificial intelligence (AI) features branded as “Apple Intelligence.” These enhancements are designed to improve user experience and set Apple apart from competitors like Samsung and Google. The AI capabilities, which were activated through a recent software update, include significant upgrades to Siri, making it more intuitive and visually engaging. Currently, these features are available only in the United States, but Apple plans to expand access globally in December 2024.
Despite the positive sales figures, Apple’s overall profit for the quarter was reported at $14 billion, or $0.97 per share, reflecting a 36% decrease from the previous year due to a substantial tax charge related to a European Union ruling. Excluding this one-time expense, earnings would have exceeded analyst expectations at $1.64 per share.
Investor reactions have been mixed; while the sales growth is encouraging, there was a slight decline in Apple’s stock price following the earnings report, as some investors had anticipated even stronger performance. Nevertheless, Apple remains optimistic that the rollout of AI features will stimulate upgrades among users of older iPhone models, potentially driving further demand for its products.
