Despite a dip in iPhone sales last quarter, Apple's services division stepped up to offset the slump.
The tech behemoth, which announced its results post-market close on Thursday, reported a 3.9% year-on-year sales growth to $124.3bn (£100bn), aligning with Wall Street predictions, as reported by .
Net income climbed by 7.1% to reach $36.3bn, outperforming analysts' estimates of $35.6bn. iPhone sales saw a marginal drop of less than one per cent (0.8%) to $69.1bn.
Conversely, the company's services division, which includes the App Store, Apple Music and Apple TV, registered a 14% revenue surge to $36.3bn. CFRA Research analyst Angelo Zino attributed the impressive results to the "We attribute the better results to stellar performance in services, which grew 14% compared to our 12% forecast, while products outside of iPhones exceeded our views".
Despite an 11% plunge in iPhone sales in China, the new AI app for iPhone, dubbed Apple Intelligence, appears to be gaining momentum. Even amidst the DeepSeek breakthrough that rocked the US tech market earlier this week, CEO Tim Cook remained optimistic about the new Chinese AI bot.
He stated: "I think innovation that drives efficiency is a good thing."
He further added, "That’s what you see in that model", and "Our tight integration of silicon and software will continue to serve us very well."
Sales of iPad and Macbook have also experienced substantial growth, with iPad revenue climbing 15.2 per cent to $8.1bn, while Macbook revenue saw a 15.5 per cent increase to $9bn. Apple's shares enjoyed a three per cent rise in after-hours trading, reaching $244.75.
Investors continue to hold a positive outlook on the tech giant's artificial intelligence (AI) endeavours, including the deployment of its AI capabilities like the improved Siri voice assistant and text proofreading tools.
