Finance

Apple CEO Tim Cook shows off future AI plans after earnings soar

Published

2 months ago

May 2, 2024

Apple CEO Tim Cook shows off future AI plans after earnings soar

Apple ( AAPL ) CEO Tim Cook took time during the company’s second-quarter earnings call on Thursday to drum up excitement about the iPhone maker’s upcoming generative AI offering.

In his remarks, Cook told listeners that the company is optimistic about the opportunities generative AI has to offer and is making significant investments in the technology.

“We believe in the transformative power and promise of AI, and we believe we have advantages that will differentiate us in this new era, including Apple’s unique combination of seamless hardware, software and services integration; groundbreaking Apple silicon with our industry-leading neural engine; and our relentless focus on privacy,” Cook said.

Ahead of the call, Apple reported better-than-expected earnings and revenue, even though iPhone sales were down about 10% year over year.

CUPERTINO, CALIFORNIA - SEPTEMBER 12: Apple CEO Tim Cook holds up a new iPhone 15 Pro during an Apple event on September 12, 2023 in Cupertino, California. Apple unveiled its range of the latest iPhone 15 versions and other product upgrades at the event. (Photo by Justin Sullivan/Getty Images) — Apple CEO Tim Cook holds up a new iPhone 15 Pro during an Apple event on September 12, 2023 in Cupertino, California. (Justin Sullivan/Getty Images) (Justin Sullivan via Getty Images)

Apple will host its annual WWDC developer conference in June, which should serve as a starting point for the company’s generative AI ambitions. Analysts hope that generative AI can usher in a new super cycle for iPhone sales. But so far the technology does not seem to boost sales of competing smartphones from the likes of Samsung and Google.

Cook has paid relatively little attention to Apple’s generative AI plans, dropping tidbits here and there about the company’s investments. This is one of the first times he has spoken so forcefully about how Apple will differentiate itself from its Big Tech rivals in generative AI.

Wall Street is eagerly awaiting Apple’s generative AI announcements. The company hasn’t released any generative AI products since the technology exploded in popularity in late 2022.

Rivals such as Amazon, Google, Meta and Microsoft, meanwhile, have introduced a range of generative AI capabilities and products, including chatbots and search engine improvements. Microsoft in particular has added generative AI directly to Windows 11 via the Windows 11 Copilot.

If Apple’s generative AI plans are to meet Wall Street expectations, it will have to enable the kind of must-have features that users can’t get on their existing devices. Next month we’ll find out what Apple has in store.