Apple claims that the rollout of Apple Intelligence is resulting in more iPhone upgrades than ever before.
Key Takeaways
More iPhones were upgraded during Apple’s fiscal first quarter than any previous period, CEO Tim Cook said on the company’s earnings call Thursday.
The milestone comes as Apple expands the availability of its AI features, with sales of the iPhone 16 faring better in markets where Apple Intelligence is available, Cook said.
In China, where Apple’s revenue dropped 11% year over year, Apple Intelligence is not yet accessible.
Tim Cook, the CEO of Apple (AAPL), stated during the company’s earnings call on Thursday that more iPhones were upgraded during the fiscal first quarter than at any other time.
That milestone comes as the iPhone 16 lineup, which rolled out in September, is outpacing the performance of the iPhone 15 in the months following its launch in September 2023, Cook said
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Customers are upgrading in part to get access to Apple Intelligence, the company’s suite of artificial intelligence tools available on iPhone 15 and iPhone 16 models, Cook said, adding that iPhone 16 sales were stronger in markets where Apple Intelligence is available compared to markets where it hasn’t been rolled out.
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In countries like China, where legislative obstacles prohibit the use of Apple Intelligence, it may indicate an opportunity for revenue development. Apple’s first-quarter revenue in the region fell 11% year over year as Chinese smartphone manufacturers like Vivo and Huawei grew their market share.
Overall, Apple’s iPhone sales fell just under 1% year-over-year to $69.14 billion.
In April, Apple Intelligence will be made available in additional languages, including French, German, Italian, Portuguese, Spanish, Japanese, Korean, simplified Chinese, and localized English in Singapore and India, the company said. Apple expects to unveil new AI features in the future too, including an “even more capable Siri,” Cook said.
Cook said he expects Apple Intelligence to “go mainstream” as the company’s base of iPhone 15 and iPhone 16 users grows.
“I know from my own personal experience, once you start using the features you can’t imagine not using them anymore,” he said.
