- Tim Cook announced that major announcements in AI would be coming.
- Analysts hope Apple’s AI strategy can boost flagging iPhone sales.
- Wedbush’s Dan Ives said Apple’s AI efforts should lead to a “supercycle” starting with the iPhone 16.
Tim Cook always keeps his cards close to his chest when it comes to AI.
Analysts pushed Apple’s CEO to talk about his upcoming generative AI announcements during Thursday’s earnings call — with very little success.
Cook continued to keep tabs on all things AI, only teasing big AI announcements in the “coming weeks.” This is standard play from the CEO, who has been reluctant to publicly discuss Apple’s AI development.
Cook reiterated that the iPhone maker was “well positioned,” saying there were “great opportunities” in Apple products for generative AI.
The remarks – and slightly better-than-expected numbers – appeared to reassure investors, with the stock climbing 6% premarket. A $110 billion stock buyback also helped.
Wedbush analyst Dan Ives described the earnings announcement as a “drum roll moment,” adding that Apple appeared ready to unveil its long-awaited AI strategy at its Worldwide Developers Conference in June . Cook has already promised to share details of the company’s work in AI later this year.
Ives said Apple’s AI efforts should lead to a “supercycle starting with the iPhone 16 this fall.”
iPhone problems
Apple must ride the generative AI wave.
The company has had a tough year, struggled in China, been fined massively and is facing a lawsuit.
An Apple Store in Shanghai. CFOTO/Future Publishing via Getty Images
Today, despite exceeding Wall Street’s pessimistic estimates, sales of its flagship product are declining. iPhone sales have fallen 10% in the past three months as the company faces increasingly tough competition in key markets like China.
Investors hope new generative AI features for its products can boost Apple’s flagging smartphone sales.
Analysts have been scrambling for months for updates on Apple’s AI progress, with some concerned that it is moving more slowly and lagging behind its Big Tech rivals.
In March, Brian Mulberry, portfolio manager at Apple shareholder Zacks Investment Management, said The Wall Street Journal the company hadn’t really made a “big splash in the AI space” yet.
A month later, Apple’s announced dismantling of two projects and teams only fueled fears that the company had lost focus and was falling behind competitors in critical areas.
Other major tech companies, including Google, Meta and Microsoft, have put AI front and center in recent earnings calls. For Google and Microsoft, investors have welcomed progress in AI despite high spending on infrastructure.
News of an upcoming announcement on Apple’s progress is likely to boost investor confidence.
Last month, a report from Bloomberg that Apple was working to overhaul its Mac lineup with new AI-driven processors gave the stock a boost.
Apple representatives did not immediately respond to a request for comment from Business Insider, made outside of normal business hours.
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