In Apple’s earnings call held on January 30, 2025, CEO Tim Cook offered insights into the performance of iPhone sales, particularly emphasizing the impact of the company’s new Apple Intelligence features. Cook highlighted that markets where Apple Intelligence had been rolled out showed stronger year-over-year sales performance for the iPhone 16 family compared to regions where these AI capabilities were not yet available. This observation underscores the significant influence Apple’s AI enhancements are having on consumer purchasing decisions. Cook noted that the introduction of Apple Intelligence has been a key driver in markets where it is available, with specific countries witnessing better sales figures for the iPhone 16 series. He mentioned that “in markets where we have rolled out Apple Intelligence, the year-over-year performance on the iPhone 16 family was stronger than those where Apple Intelligence was not available.” Despite this success, Cook also acknowledged challenges in markets like China, where Apple Intelligence has not yet been introduced. The absence of these features in China contributed to an 11% decline in revenue for the region during the fiscal quarter. Cook explained that approximately half of this decline was due to changes in channel inventory, with the remainder likely attributable to the lack of Apple Intelligence availability. Moreover, Cook discussed how Apple Intelligence is not just a feature set but a transformative tool that enhances user experiences across Apple’s ecosystem. He emphasized that the adoption of these features would continue to grow as more users upgrade to devices compatible with Apple Intelligence, like the iPhone 15 Pro and iPhone 16 models. MacDailyNews Take: Cook’s comments also touched on future plans for expanding Apple Intelligence, mentioning that support for additional languages would be added in April, which could further influence sales in new markets. However, he did not provide a timeline for when these features would be available in China, citing ongoing work with local regulators. We are currently about 1/4th of the way to being sustainable with Substack subscriptions. Please tell your Apple-loving friends about MacDailyNews on Substack and, if you’re currently a free subscriber, please consider $5/mo. or $50/year to keep MacDailyNews going. Just hit the subscribe button. Thank you! You're currently a free subscriber to MacDailyNews. For the full experience, upgrade your subscription.
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Friday, January 31, 2025
Apple Intelligence has been a key driver of iPhone sales in markets where it is available
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