Despite keeping details of the AI developments under wraps, Cook reassured investors that Apple is "well positioned" for big opportunities in generative AI across its products. This, along with better-than-expected numbers and a $110 billion share buyback, led to a 6% premarket climb in Apple's stock. The company is expected to unveil its AI strategy at the Worldwide Developers Conference in June.
Key takeaways:
- Apple CEO Tim Cook has teased major AI announcements in the coming weeks, which analysts hope can boost the company's slumping iPhone sales.
- Wedbush analyst Dan Ives said Apple's AI efforts are set to drive a 'supercycle' starting with the iPhone 16, and the company is expected to unveil its AI strategy at its Worldwide Developers Conference in June.
- Apple's iPhone sales have declined by 10% in the past three months, with the company facing tough competition in key markets like China.
- There are concerns that Apple is moving more slowly and falling behind its Big Tech rivals in AI development, but news of an upcoming AI announcement is likely to bolster investor confidence.