Apple CEO Tim Cook talks about future AI plans after profit beat

Apple (AAPL) CEO Tim Cook took time during the company's second-quarter earnings call Thursday to drum up excitement about the iPhone maker's upcoming generative AI products.

In his talk, Cook told listeners that his company is bullish on the opportunities generative AI presents and is investing heavily in the technology.

“We believe in the transformative power and potential of AI, and we believe in Apple's unique combination of seamless hardware, software, and services integration, breakthrough Apple silicon with industry-leading Neural Engine, and Apple. “We believe there are benefits that differentiate us in this new era, including a unique combination of privacy and our unwavering focus on privacy,” Cook said.

Ahead of the conference call, Apple reported better-than-expected earnings and sales, even though iPhone sales were down about 10% year over year.

Cupertino, California - September 12: Apple CEO Tim Cook holds up the new iPhone 15 Pro at an Apple event on September 12, 2023 in Cupertino, California. Apple revealed its latest iPhone 15 version lineup and other product upgrades during the event. (Photo by Justin Sullivan/Getty Images) — Apple CEO Tim Cook holds up the new iPhone 15 Pro at an Apple event in Cupertino, California on September 12, 2023.(Justin Sullivan/Getty Images) (Justin Sullivan via Getty Images)

Apple will hold its annual WWDC developer conference in June, which should serve as a springboard for the company's generative AI ambitions. Analysts expect generative AI could spark a new iPhone sales supercycle. But so far, the technology doesn't appear to be boosting sales of competing smartphones from Samsung, Google and others.

Mr. Cook has been relatively quiet about Apple's generative AI plans, leaking tidbits here and there about the company's investments. This is the first time he has spoken out so strongly about how Apple will differentiate itself from Big Tech rivals in the field of generative AI.

Wall Street is anxiously awaiting Apple's announcement of generative AI. The company has not announced any generative AI products since the technology exploded in late 2022.

Meanwhile, rivals such as Amazon, Google, Meta and Microsoft are rolling out an array of generative AI capabilities and products, including chatbots and improved search engines. Specifically, Microsoft has added generative AI directly to Windows 11 through Windows 11 Copilot.

For Apple's generative AI plans to meet Wall Street's expectations, users will need to enable certain essential features not available on existing devices. We'll find out what Apple has planned next month.