Apple’s Downbeat Quarter

After a streak of healthy big tech earnings over the past week, we got a decidedly more downbeat report from Apple tonight. The iPhone maker reported a 4% drop in sales and slightly lower profits. Revenues from its engine, the iPhone, fell 10% on a year earlier, and the company’s June-quarter outlook implied continued weak iPhone sales. All that sets the stage for another stagnant year for Apple, just like 2023. No wonder Apple shares are down so far in 2024! 

On a call with analysts, CEO Tim Cook talked up his excitement about the potential of generative artificial intelligence to help Apple’s businesses. But he steadfastly resisted pleas from analysts to say anything specific to explain his confidence, promising instead to say more in the coming weeks. Perhaps that’s not surprising—Apple’s calls with investors are all about marketing its products rather than informing anyone of anything. Still, it was a contrast with some of the CEO calls of other big tech firms in the past few days, where we heard a lot of specific talk about AI and its business impact.