Apple's AI Ambitions and Vision Pro Spark Enterprise Interest Amid iPhone Revenue Decline

Apple Intelligence's 'Transformative' Capabilities Excite Tim Cook Even As iPhone Revenue Declines 1% Year-Over-Year - Apple (NASDAQ:AAPL)

On Thursday, Apple Inc. AAPL CEO Tim Cook said that while iPhone revenue was down 1%, on a constant currency basis, the tech giant grew compared to last year. What Happened: During Apple's third-quarter earnings call, Cook expressed his excitement over the company's innovations, stating they are "unlocking new ways of working, learning, and tapping into the unlimited promise of human potential." He also shared details about the company's third-quarter results, highlighting that the iPhone revenue stood at $39.3 billion, marking a 1% decrease year-over-year. See Also: Mark Zuckerberg Takes A Veiled Swipe At Elon Musk? Meta CEO Says He Is Pleased With The Progress Facebook Is Making With Young Adults Despite The 'Public Narrative' Despite the slight dip in iPhone revenue, Cook spoke about the positive customer feedback for the iPhone 15 lineup, praising its "incredible battery life, exceptional cameras, and unmatched power and performance." He also highlighted the introduction of Apple Intelligence which is set to be included in the iOS 18 update. "Apple Intelligence utilizes the power of our most advanced iPhones, the iPhone 15 Pro and Pro Max, offering a transformative set of capabilities," he stated. Later in the call, when he was asked about the overview of the current iPhone replacement cycles, Cook refrained from giving any exact numbers. Instead, he stated, "In terms of upgrade rates, it's very difficult mid-cycle to call upgrade rates." Adding, "I would just say that with Apple Intelligence, we are very excited about the level of value that we're going to provide to users. And we believe that -- that presents another reason for a compelling upgrade." Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Why It Matters: The introduction of Apple Intelligence was predicted to trigger a three-year iPhone upgrade cycle, potentially leading to a surge in the company's sales. This AI feature, compatible only with iPhone 15 Pro models or newer, was seen as a strategic move by Apple to boost device sales. Despite the 1% dip in iPhone revenue, the third-quarter earnings beat expectations. Cupertino's revenue rose by 4.9% to $85.78 billion for the quarter, exceeding the average analyst estimate of $84.53 billion, according to Benzinga Pro data. Price Action: At the time of writing, Apple shares were slightly down during the pre-market session reaching $218.19. The stock had closed Thursday's session down 1.68%, ending at $218.36. Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Epic Games' Tim Sweeney Slams Apple's 'Find My' Anti-Theft Feature, Calls It 'Super Creepy Surveillance Tech' That Should Not Exist Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock Market News and Data brought to you by Benzinga APIs

Apple Vision Pro Sparks Enterprise Interest: Tim Cook Says Companies Can 'Pursue Their Best Ideas Like Never Before' - Apple (NASDAQ:AAPL)

Apple Inc.'s AAPL latest foray into spatial computing, the Vision Pro, is showing early signs of success in the enterprise market, CEO Tim Cook underscored during the company's earnings call. What Happened: "We've seen great interest for Vision Pro in the enterprise, where it can empower companies large and small to pursue their best ideas like never before," Cook stated, highlighting the device's potential beyond consumer applications. Cook mentioned that organizations like Boston Children's Hospital and passenger airline Lufthansa use Vision Pro to create innovative spatial computing experiences for workforce training. This early adoption indicates the device's potential to revolutionize professional development across various industries. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. He also highlighted the growing app ecosystem around Vision Pro, with over 2,500 native spatial apps and 1.5 million compatible apps for Vision OS. This robust ecosystem could be a key driver for enterprise adoption, allowing businesses to customize the device to their needs, he said. Apple's Vision Pro is gaining traction in the enterprise market at a time when the company is also advancing its artificial intelligence initiatives. See Also: Bill Gates' Ex-Wife Reveals She Shares Jeff Bezos' Ex-Wife MacKenzie Scott's Parenting Style Why It Matters: The success of Apple's Vision Pro in the enterprise market is a significant development for the company. This comes on the heels of Apple CFO Luca Maestri announcing that the company returned over $32 billion to shareholders in the third quarter, including $3.9 billion in dividends and $26 billion through stock repurchases. Despite a 6.5% yearly decline in sales in Greater China, CEO Tim Cook remains optimistic about long-term prospects in the region. He highlighted that the sales decrease was less than 3% on a constant currency basis and pointed to positive indicators like a record iPhone install base. Analysts have also been positive about Apple's third-quarter performance, with Wedbush analyst Daniel Ives calling it a "gold-medal performance." He noted that revenue exceeded expectations and iPhone sales were strong. Apple's third-quarter earnings report beat expectations, with revenue growing year-over-year. However, the stock initially saw a slight dip due to concerns over China and Services performance. Price Action: Apple's stock closed at $218.36 on Thursday, down 1.68% for the day. In after-hours trading, the stock increased by 0.57%. Year to date, Apple's stock has risen by 17.63%, according to data from Benzinga Pro. Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Nvidia Stock Is Surging After The Bell: What's Going On? Photo courtesy: Apple Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs