TechnologyCantillon

A chill on Apple’s fortunes may be abating

As with Microsoft and Google, the tech giant must show it is taking artificial intelligence seriously

An upcoming event may help reverse revenue declines in the iPad sector, which has fallen 17%. Photograph: Bloomberg

Cantillon's face
Cantillon
Sun May 5 2024 - 06:00

On the face of it, the last quarter was a good one for Apple. Revenue may have fallen, but not as much as feared. And with the company predicting a return to revenue growth in this quarter, it seems the cold wind that has chilled Apple’s business recently may be passing.

There was a lot to cheer shareholders. Aside from the anticipated sales growth in the current period, Apple raised its quarterly dividend for the 12th consecutive year. It also announced a $110 million share buyback, one of the biggest ever held in the US.

Has Apple Inc run out of ideas?

Listen | 20:14

Mac sales were up, and services also continued to grow, adding 14 per cent year-on-year. While there was little new information on the Vision Pro, Apple’s latest device got a passing mention from chief executive Tim Cook in his presentation, noting more than half of the Fortune 100 companies have bought Apple Vision Pro units.

Next week, Apple is holding a launch event where it is widely expected to unveil new iPads. And not before time, it seems. Although Apple has refreshed its line-up in recent years, revenue in the iPad sector was down in the last quarter by 17 per cent — a significant sum — showing fatigue may be setting in. The upcoming event may help reverse that decline.

READ MORE

But Apple must also show it is taking artificial intelligence (AI) seriously. While other big tech companies such as Microsoft and Google have made big bets on generative AI, Apple has, in true Apple fashion, taken a more cautious approach — at least outwardly. The company has been on an acquisition spree, buying up AI companies to bolster its expertise.

All eyes will now turn to the Apple Worldwide Developers Conference event in June when the company will share its plans for future technology with developers — and AI is expected to feature strongly. Apple will be keen to prove it has not fallen behind its rivals in innovation.

READ NEXT
LATEST STORIES