Apple’s spring sales surge amid broader market decline
Despite a turbulent market and declining iPhone sales, Apple has reported a robust 5% increase in revenue for the three months ending in June, totaling $85.8 billion.
This marks a significant turnaround from the downturn at the beginning of 2024.
The positive financial results from Apple provided a rare bright spot in an otherwise grim landscape for major US stock indexes.
The Dow Jones Industrial Average fell by 1.2%, the S&P 500 by nearly 1.4%, and the Nasdaq by 2.3%.
The declines continued in after-hours trading, with Amazon and Intel experiencing notable drops.
Intel’s shares plunged over 19% as the company announced a major cost-cutting initiative, including the elimination of more than 15,000 jobs, in response to a decline in sales.
Amazon, despite a 10% rise in sales to $148 billion, saw its shares drop over 4% due to a forecasted slowdown in growth and increased investment pressures, particularly in artificial intelligence (AI).
The market turbulence was not confined to the US. In Asia, Japan’s Nikkei index took a severe hit, ending the day down by 5.8%.
Recent weeks have seen a sharp focus on AI investments, leading to instability as companies that fall behind in the AI race face severe market repercussions.
Intel, for instance, has seen a shift in business towards competitors like Nvidia, known for their powerful AI chips.
With a 1% year-on-year decline in sales and a bleak outlook for the remainder of the year, Intel’s CEO Pat Gelsinger emphasized the need for bold operational changes.
In contrast, Apple is well-positioned to capitalize on AI advancements. The company recently introduced “Apple Intelligence” features, which enhance user experience with AI-driven improvements such as advanced transcription and personalized emojis.
These new features, available to developers in the US and set for wider release later this year, are expected to drive device upgrades.
CEO Tim Cook highlighted the company’s continued investment in AI, expressing strong optimism about its future prospects.
From April to June, while iPhone sales dropped by 1%, Apple saw increased sales in its Mac and iPad lines, alongside a record-breaking performance from its services division, which includes Apple Pay and Apple News.
The company remains confident in its growth trajectory, bolstered by its innovative AI features.
Source: bbc.com
