On Thursday, Apple executives projected solid sales growth, signaling a rebound from a decline in iPhone sales attributed to the introduction of artificial intelligence features.
Apple's CEO Tim Cook announced plans to expand the reach of these features in Europe this spring, resulting in a 3.14% rise in shares during after-market trading.
Apple has taken a cautious stance towards AI, emphasizing its incorporation as a selling point for new hardware, distinct from the data center investments made by competitors like Microsoft.
Despite initial hiccups in their AI rollout, Apple experienced increased sales and profits in the first quarter, driven by strong iPad and Mac sales due to upgraded chips appealing to customers.
Chief Financial Officer Kevan Parekh expressed optimism for the second fiscal quarter, anticipating a sales increase in the low- to mid-single digit range adjusted for currency impact.
While iPhone sales slightly dropped to $69.14 billion in the last quarter, below analyst expectations, total sales for the fiscal first quarter exceeded Wall Street estimates at $124.30 billion, with earnings per share surpassing consensus targets.
Apple's AI strategy, known as Apple Intelligence, enhancing functionalities like email drafting and call transcription, has shown positive impact on iPhone sales in markets where it has been introduced, driving growth.
Services like iCloud and streaming music contributed significantly to Apple's revenue, while the wearables category, including the Apple Watch and AirPods, fell slightly short of analyst projections at $11.75 billion in sales.