Apple has reported soaring demand for its latest iPhone models, with sales in China leading the global surge, as CEO Tim Cook prepares to step down from his role. In its quarterly earnings release on Thursday, Apple posted a 17% increase in revenue to $111 billion compared to the same period last year. Sales in China rose 28% year-over-year, outpacing all other regions.
Cook described recent iPhone demand as "extraordinary," noting that the iPhone 17 has become the most successful launch in the company's history. However, sales of other Apple products, including Mac computers and wearable devices like the Apple Watch, remained relatively flat.
During a call with analysts, Cook highlighted strong interest in the new Macbook Neo, a lower-priced laptop that has attracted many first-time Mac buyers. He called the demand "off the charts" and noted that the quarter set a record for new Mac customers.
Cook also discussed Apple's artificial intelligence (AI) efforts, promising updates to Apple Intelligence later this year. The AI features will be integrated into Siri and other services. "This is not AI as a standalone feature, but AI as an essential and intuitive part of our devices," Cook said, emphasizing that Apple's approach prioritizes user privacy. He argued that Apple platforms are "the best places to experience AI."
Apple has taken a different path from many tech giants by partnering with companies like OpenAI and Google rather than building its own vast AI model. This strategy reduces Apple's exposure to potential losses if AI expectations fall short, though some critics view it as a late move.
Cook, who is moving from CEO to chairman, praised his successor, longtime hardware executive John Ternus. Ternus, who will take over on September 1, briefly addressed analysts, promising to continue Cook's financial discipline and hinting at an ambitious product roadmap. "Suffice it to say this is the most exciting time in my career at Apple to be building products and services," Ternus said.