Apple Reports Biggest Drop in iPhone Sales Since Early Months of Pandemic
Tech giant Apple has announced a significant decline in iPhone sales, marking the biggest drop since the early months of the COVID-19 pandemic. According to the company’s latest earnings report, sales for the first quarter of 2021 were down 10% compared to the same period last year.
This decline in sales is reminiscent of the 2020 iPhone model delay, which was caused by factory closures during the lockdown. Overall, Apple earned $90.8bn (£72.4bn) in the latest quarter, representing a 4% decrease from the previous year. This is the fifth consecutive quarter that the company’s revenue has dipped from the previous year.
In addition, Apple’s profit for the past quarter was $23.64bn (£18.85bn), which is a 2% decrease from the same period last year. Despite the dip in sales and profit, the company’s overall value remains strong, with its share price rising nearly 7% after investors had expected a larger decline in sales.
During a recent discussion, Apple CEO Tim Cook shed light on the company’s plans to utilize artificial intelligence (AI). While rival company Samsung has already introduced AI features in its phones, including generative AI chatbots, Apple has yet to announce its plans for integrating AI into its iPhones.
However, speculations suggest that the next iPhone model will include AI microchips and larger screens. More details about this technology will be revealed at Apple’s annual developers’ conference in June.
One of the potential uses for generative AI in phones is the ability to write software code, essays, or create images based on user prompts. Mr. Cook expressed optimism about the company’s opportunities in this field, stating, “We feel very bullish about our opportunity in generative AI and we’re making significant investments.” He added, “We’re looking forward to sharing some very exciting things.”
In other news, Apple has recently been fined £1.5bn for violating competition laws, and the company is also facing a lawsuit for allegedly having an illegal monopoly on smartphones. With the introduction of generative AI in iPhones, Apple may face even more scrutiny from regulators and competitors. However, the company remains confident in its investments and is determined to continue innovating and providing cutting-edge technology to its customers.
