Apple (AAPL) CEO Tim Cook took time during Thursday’s second-quarter earnings call to drum up excitement about the iPhone maker’s upcoming generative AI offerings.
In his remarks, Cook told the audience that the company is optimistic about the opportunities offered by generative AI and is making significant investments in the technology.
“We believe in the transformative power and promise of AI and believe we have advantages that will set us apart in this new era, including Apple’s unique combination of seamless hardware, software and services integration; breakthrough Apple silicon with our industry-leading neural engine; and our unwavering focus on privacy,” Cook said.
Ahead of the earnings call, Apple reported better-than-expected earnings and revenue, even though iPhone sales fell about 10% year-over-year.
Apple will host its annual developer conference WWDC in June, intended to serve as a launching pad for the company’s generative AI ambitions. Analysts hope generative AI could spark another iPhone sales supercycle. But so far the technology doesn’t appear to be boosting sales of competing smartphones from Samsung and Google.
Cook was relatively quiet about Apple’s generative AI plans, dropping little hints here and there about the company’s investments. This is one of the first times he has expressed so clearly how Apple will differentiate itself from its Big Tech competitors in the generative AI space.
Wall Street is eagerly awaiting Apple’s generative AI announcements. The company has not released any generative AI products since the technology became increasingly popular in late 2022.
Competitors such as Amazon, Google, Meta and Microsoft have now introduced a range of generative AI features and products, including chatbots and search engine improvements. Notably, Microsoft has added generative AI directly to Windows 11 via the Windows 11 Copilot.
If Apple’s generative AI plans are to live up to Wall Street’s expectations, the company will need to enable some must-have features that users can’t get on their existing devices. We’ll find out what Apple is up to next month.
Email Daniel Howley at [email protected]. Follow him on Twitter at @DanielHowley.
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