Apple (AAPL)’s new A.I.-infused software update, iOS 18.1, has only been available for three days. But, according to CEO Tim Cook, it’s already being adopted twice as fast as Apple’s previous iOS 17.1 update, he told analysts yesterday (Oct. 31) on an earnings call. “That clearly shows a level of interest out there,” Cook said.
In June, Apple unveiled its plans to gradually roll out its take on A.I. through Apple Intelligence, a set of A.I. tools available to users of newer iPhone, iPad and Mac computers. While some of these features, which aid in proofreading messages, summarizing emails and providing a more conversational version of Siri, are now available via 18.1, Cook told analysts that more capabilities are coming soon. In December, another software update will integrate OpenAI’s ChatGPT and provide “even more powerful writing tools and visual intelligence experiences,” said the executive.
Apple Intelligence is currently only available in U.S. English but will expand to include localized English for the U.K., Australia, Canada, Ireland and New Zealand later this year, with plans to add more languages next April. “We’re moving just as fast as possible while ensuring quality,” said Cook.
Even without a widespread rollout of Apple Intelligence, Apple’s iPhones appear to be selling just fine. The company, which added the new iPhone 16 and iPhone 16 Plus models to its lineup in September, saw its iPhone revenue for the July-September quarter increase by more than 5 percent year-over-year to $46.2 billion.
iPhone sales made up nearly half of Apple’s total quarterly revenue of $94.9 billion, up 6 percent from last year. iPad sales rose by nearly 8 percent to $6.9 billion during the quarter, and Mac sales increased by 1 percent to $7.7 billion. Sales from the accessories and wearable devices sector dipped by 3 percent to $9 billion, while Apple’s services division, which includes App Store, Apple Pay, Apple TV, iCloud and Apple Music, reported record revenue of $24.9 billion for the quarter, up 12 percent from last year.
Apple’s revenue geographically was up everywhere besides China, where the company faces lagging consumer demand and an increasingly competitive environment. Sales in the region was flat during the past quarter, falling slightly to $15.03 billion from last year’s $15.08 billion last year. The decrease was less substantial compared to dips in previous recent quarters.
The company additional noted a slump in net income, which fell 35 percent year-over-year to $14.73 billion due to a one-time charge. Apple earlier this year paid $14.4 billion to the European Union as a result of a 2016 case involving its tax payments to Ireland. Excluding the fee, Apple said its net income increased 12 percent compared to the same quarter last year.