4 Key Takeaways From Apple's Earnings Call

After Apple (AAPL) reported fiscal third-quarter results that topped analysts' expectations, CEO Tim Cook gave investors an update connected nan iPhone maker's artificial intelligence (AI) opportunities, outlook, and much successful nan company’s net telephone Thursday.

New AI Features To Be Rolled Out successful Stages

Amid speculation astir erstwhile caller AI features will beryllium released aft Apple unveiled Apple Intelligence successful June, Cook suggested nan caller features will go available to users complete time alternatively than each astatine once.

The CEO said nan institution plans to rotation retired Apple Intelligence to U.S. English users successful nan fall, and past "proceed pinch much functionality, much features, and much languages and regions" successful nan adjacent year.

Cook besides said Apple plans to merge ChatGPT features into iPhones by nan extremity of nan 2024 almanac twelvemonth done its partnership pinch OpenAI.

Apple provided developers a first look astatine Apple Intelligence up of reporting net done nan beta type of iOS 18.1.

Record Base Could Add Fuel to AI-Driven Upgrade Cycle

Cook said that while it whitethorn beryllium difficult to task upgrade rates now, nan institution is "very excited" astir nan "level of value" Apple Intelligence is expected to bring users.

Apple Intelligence will tally connected iPhone 15 and newer devices, which could thrust consumers to upgrade for nan AI features.

Cook besides reported Apple's installed personification guidelines reached a grounds high, successful what could adhd substance to nan standard of a imaginable AI-driven upgrade cycle.

Apple is expected to denote nan iPhone 16 pinch iOS 18 successful September, pinch AI capabilities to follow.

Double-Digit Growth successful Services Revenue

After Apple reported record-high gross from its services conception successful nan 3rd quarter, nan institution said it expects double-digit maturation to different grounds precocious successful nan 4th quarter.

Apple reported its services gross climbed to $24.21 cardinal successful nan 3rd quarter, up 14% from nan year-ago period. By contrast, merchandise income grew astir 1.6% arsenic iPad and Mac income rose, while iPhone income declined adjacent to 1%.

The institution reported full gross of $85.78 cardinal for nan quarter, representing 5% year-over-year growth.

Improvements successful China Amid Pricing Discounts

Despite reporting a year-over-year driblet successful China sales, Cook said location were signs of betterment successful nan region compared to nan first half of fiscal 2024, suggesting recent pricing discount efforts could beryllium paying off.

The institution reported a 6.5% year-over-year diminution successful income successful nan China region, though Cook said astir 3% was currency-related.

Cook said iPhone 15 income since nan device's motorboat were outperforming what nan institution recorded for nan iPhone 14 successful nan greater China region, offering what could beryllium a affirmative parameter up of nan upcoming iPhone 16.

Apple shares were small changed successful extended trading Thursday pursuing nan company's net call. They've gained complete 13% since nan commencement of nan twelvemonth done Thursday's close.