Apple iPhone sales dip despite AI rollout

Sales of Apple iPhones dropped astatine the extremity of past year, arsenic the tech firm's rotation retired of caller artificial quality (AI) features was met with a lukewarm response.

Chief enforcement Tim Cook said the caller features helped to thrust stronger income successful the countries wherever they were available, specified arsenic the US.

But iPhone income slipped astir 1% wide compared with past year, to $69.1bn (£55bn).

The institution is besides contending with different challenges, including a income drop in China and the anticipation its US income volition beryllium deed by tariffs threatened by President Donald Trump.

He has called for tariffs of up to 60% connected products made successful China, wherever Apple does overmuch of its manufacturing.

But the timing and afloat scope of those plans, which would enactment a caller taxation connected imports into the US, remains highly uncertain.

Mr Cook told investors connected Thursday the institution was monitoring the situation.

Apple has been gradually introducing AI features to its products, starting past twelvemonth successful the US.

Investors person been hoping this volition re-ignite sales, which person slowed arsenic customers clasp onto their phones and different products for longer.

Mr Cook said Apple was expecting to propulsion retired the AI features to much languages successful April.

However, the features person not been without controversy. The AI's quality roundup alerts came nether occurrence earlier this period for making repeated mistakes successful their summaries of quality headlines - including ones from the BBC.

The diagnostic was yet suspended pursuing implicit a week of criticism.

Meanwhile, Mr Cook said connected Thursday Apple had seen a grounds fig of purchases of caller iPhones from radical who already ain older iPhones.

The institution said wide income roseate 4% to $124.3bn, lifted by a leap successful its machine income and beardown maturation successful its services business, which includes Apple TV, Apple News and Apple Pay.

Profits roseate 7% year-on-year to $36.3bn.

Emarketer expert Jacob Bourne said Apple was going to person to person to velocity up the roll-out and commencement looking astatine caller kinds of products to support its edge.

"The results amusement Apple tin inactive execute, but the adjacent fewer quarters volition trial whether it tin equilibrium its cautious attack with the market's hunger for AI innovation," helium said.