Apple has increased its research and development spending to $22.61 billion in the current fiscal year, an increase of around $3.12 billion from the previous year. This increase is attributed to the company's work on generative AI technology. Apple CEO Tim Cook stated that the company would continue to invest and innovate in a wide range of AI technologies to enrich people's lives.
Key takeaways:
- Apple shares fell by approximately 2 percent due to a predicted sales slump in the current quarter, despite beating many analyst predictions for sales and profit targets in the third quarter.
- Apple's revenue for the quarter ended July 1 fell 1.4 percent to about $81.8 billion, while earnings per share rose 5 percent to $1.26, higher than analysts' expectations.
- Apple's research and development spending has increased to $22.61 billion in the current fiscal year, around $3.12 billion more than the last year, largely due to work on generative AI technology.
- Despite weaker-than-expected iPhone sales, growth in China and strong sales in the services segment like Apple TV have helped offset some of those numbers, with Apple expecting a rise in iPhone sales in the fourth quarter.