Apple CEO Tim Cook has announced that the company is heavily investing in artificial intelligence (AI) as it reported its third consecutive quarter of declining revenues. The company’s sales for the fiscal third quarter fell by 1.4% to $81.8 billion. However, iPhone sales slightly missed analyst estimates, but were compensated by strong sales in the services segment and in China. Despite the sales slump, Apple made a profit of $19.9 billion, which was higher than analysts had predicted.
In an interview with Reuters, Tim Cook revealed that the increased research and development (R&D) spending is partly driven by work on generative artificial intelligence. He emphasized that Apple has been conducting research across various AI technologies, including generative AI, for several years. Cook stated, “We’re going to continue investing and innovating and responsibly advancing our products with these technologies to help enrich people’s lives.”
Apple’s R&D spending for the fiscal year has reached $22.61 billion, which is $3.12 billion higher compared to the previous year. This aligns with the significant investments being made in AI by major tech rivals such as Alphabet and Microsoft. Cook’s announcement comes as Apple faces intense competition in the AI sector, where companies are striving to develop cutting-edge technologies that can enhance user experiences.
Meanwhile, Amazon reported better-than-expected results, with revenue increasing by 11% to $134.4 billion in the second quarter. The company experienced a significant boost in sales during its annual marketing event known as Prime Day. Amazon’s quarterly profit of $6.7 billion was nearly double what analysts had predicted. As a result, Amazon’s shares rose by 6% in after-hours trading.
The news of Apple’s focus on AI and Amazon’s strong financial performance highlights the growing importance of artificial intelligence in the technology industry. Major companies recognize the potential of AI to drive innovation and improve customer experiences, leading to increased investments in research and development in this field.