Apple CEO Tim Cook says the company is “open” to mergers and acquisitions to “significantly” increase its investment in AI, as reported by CNBC. Cook's statement came along with the release of Apple's third quarter revenue results, revealing that the iPhone maker had raked $94 billion between April and June, showing a 10% increase over the same period last year.
The statement shows that Apple continues to be seen as behind the AI race, and that Apple Intelligence's efforts are behind the scenes of poaching peers and some of its top engineers. The company is increasingly seeking help from AI startups. It also suggests that Apple is even open to make a big acquisition to keep up.
When talking about AI, Cook “is embedded across our entire devices, across our platform, and across our company,” CNBC said. Apple is promoting big plans for the Ai-Enhanced version of Siri, but the timing of its release remains uncertain after the company delays the improvements. Apple's software SVP Craig Federighi said it wasn't “reliable” enough to be released widely.
“We're making good progress with more personalized Siri,” Cook said in a revenue call Thursday. “We're reassigning quite a few people to focus on AI capabilities within our company.”
Despite AI hiccups, Apple's core business remains strong. Apple's iPhone business rose 13% year-on-year to $44.6 billion. Mac Revenue rose to revenues of perhaps $8.1 billion as Apple released its new MacBook Air in March. Revenue from Apple services, including subscriptions such as Apple TV Plus, Icloud, Apple Music, increased 13% to $27.4 billion.
However, those businesses may face other challenges. In May, Apple said President Donald Trump's tariffs could cost at least $900 million in the June quarter. These costs could be even higher as Trump threatened Apple with at least 25% tariffs if the company didn't bring production to the US. Apple has already shifted some of its production to India to reduce its dependence on China. This is a move where Trump is not a fan.
Apple plans to launch a new iPhone 17 lineup sometime in September. iOS 26 was released around the same time, and some users must offer a split “liquid glass” design language.
