- Tim Cook said major AI announcements are planned.
- Analysts are hopeful that Apple's AI strategy can boost sluggish iPhone sales.
- Wedbush's Dan Ives said Apple's AI efforts will drive a “supercycle” starting with the iPhone 16.
Tim Cook still holds his cards close to his chest when it comes to AI.
Analysts urged Apple's CEO to talk about future generative AI announcements during Thursday's earnings call, with little success.
Cook has kept a tight lid on all things AI, only teasing that there will be big AI announcements in the “coming weeks.” This is a common tactic of the CEO, who has been reluctant to talk publicly about Apple's AI developments.
Cook reiterated that the iPhone maker is “in a good position” and said there is a “huge opportunity” for generative AI across Apple products.
That comment and the slightly better-than-expected numbers seemed to reassure investors, sending the stock up 6% premarket. It also supported a $110 billion share buyback.
Wedbush analyst Dan Ives described the earnings call as a “drum-dropping moment,” adding that Apple plans to unveil its long-awaited AI strategy at June's Worldwide Developers Conference. . Cook previously promised to share more details about the company's AI efforts later this year.
Ives said Apple's AI efforts will drive “a supercycle starting with iPhone 16 this fall.”
iPhone problems
Apple needs to ride the wave of generative AI.
The company has had a rough year, struggling in China, receiving huge fines and facing lawsuits.
Now, sales of the company's flagship product are declining, despite beating Wall Street's pessimistic forecasts. iPhone sales have fallen 10% in the past three months, and the company faces increasingly tough competition in key markets such as China.
Investors are hoping that the company's products' new generative AI capabilities could boost Apple's sluggish smartphone sales.
Analysts have been clamoring for updates on Apple's AI progress in recent months, with some concerned that the company is moving slowly and falling behind its big tech rivals. are doing.
Brian Mulberry, a portfolio manager at Apple shareholder Zacks Investment Management, said in March: wall street journal The company had not yet made a “significant impact in the AI space.”
A month later, reports that Apple had disbanded two projects and teams only fueled concerns that the company was losing focus and falling behind rivals in key areas.
Other Big Tech companies like Google, Meta, and Microsoft have put AI at the forefront of their recent earnings calls. In the case of Google and Microsoft, investors welcomed advances in AI despite heavy spending on infrastructure.
News of upcoming announcements on Apple's progress is likely to boost investor confidence.
Last month, Bloomberg reported that Apple was working on revamping its Mac lineup with new processors powered by cutting-edge AI, boosting the stock price.
Apple representatives did not immediately respond to Business Insider's request for comment outside of normal business hours.
