- iPhone sales slumped but services growth boomed for Apple.
- $110 billion buyback boosted shares despite hardware struggles.
- Details on Apple’s AI plans remain shrouded in secrecy.
Apple’s subscription strategy bears fruit
Apple reported a 10% year-over-year drop in iPhone sales for Q2, dipping from $51.33 billion to $45.96 billion.
The decline was partly fueled by an 8% slump in China as consumers awaited AI advancements and the upcoming iPhone 16 release.
Despite the hardware hiccup, Apple’s services segment, including iCloud, Apple TV+, and Apple Music, jumped 14% year-over-year.
This growth, coupled with a massive $110 billion stock buyback, propelled the company’s shares over 6% in after-hours trading.
The AI enigma: Apple remains tight-lipped
With iPad sales slipping from $6.67 billion to $5.56 billion year-over-year, Apple is expected to unveil new tablets next week, alongside the M4 chip. However, Microsoft’s AI efforts at Build could challenge Apple’s chip progress.
While remaining tight-lipped on AI integration plans, CEO Tim Cook hinted at “exciting” upcoming announcements, likely at WWDC in June.
Reports suggest Apple may incorporate OpenAI’s ChatGPT and Google’s Gemini into future iPhones.
