Apple (AAPL) CEO Tim Cook took time during the company’s second-quarter earnings conference call Thursday to drum up excitement for the tech maker’s upcoming generative AI offerings. ‘iPhone.
In his remarks, Cook told listeners that the company was optimistic about the opportunities offered by generative AI and was investing significantly 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 integration of hardware, software and services ; revolutionary Apple silicon with our industry-leading Neural Engine; and our continued concern for privacy,” Cook said.
Before the call, Apple reported better-than-expected earnings and revenue, even though iPhone sales fell about 10% year over year.
Apple will host its annual WWDC developer conference in June, which is expected to serve as a launching pad for the company’s generative AI ambitions. Analysts hope generative AI could kickstart a new iPhone sales supercycle. But so far, the technology doesn’t appear to be boosting sales of competing smartphones from the likes of Samsung and Google.
Cook has been relatively tight-lipped about Apple’s generative AI plans, dropping small 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 the area of generative AI.
Wall Street is eagerly awaiting Apple’s generative AI announcements. The company has not launched any generative AI products since the technology exploded in popularity in late 2022.
Competitors such as Amazon, Google, Meta and Microsoft have meanwhile deployed a range of generative AI capabilities and products, including chatbots and search engine enhancements. Microsoft, in particular, added generative AI directly to Windows 11 through Windows 11 Copilot.
If Apple’s generative AI plans are to live up to Wall Street’s expectations, they will need to enable some much-needed features that users can’t get on their existing devices. We’ll find out what Apple is up to next month.
Email Daniel Howley at [email protected]. Follow him on Twitter at @DanielHowley.
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