Apple revenues fall for third straight quarter as company invests heavily in AI

Apple CEO Tim Cook announced a significant investment in artificial intelligence (AI) following the company's third consecutive quarter of declining revenues. Despite a 1.4% drop in sales to $81.8bn for the fiscal third quarter ending 1 July, the company made a profit of $19.9bn, higher than expected. Strong sales in the services segment and in China, which grew 8% year on year, compensated for slightly missed iPhone sales estimates. Cook stated that the increased R&D spending, which has reached $22.61bn for the fiscal year so far, was partly driven by work on generative AI.

In other news, Amazon reported better than expected results, with an 11% increase in sales to $134.4bn in the second quarter and a quarterly profit of $6.7bn, nearly double what analysts expected. The company anticipates further revenue growth in the summer, following its biggest sales day ever during last month's Prime Day. Amazon shares rose 6% in after-hours trade.

Key takeaways

Apple is investing heavily in artificial intelligence (AI), with increased R&D spending partly driven by work on generative AI.
Apple's sales for the fiscal third quarter fell 1.4% to $81.8bn, marking its third consecutive quarter of declining revenues.
Despite slightly missing iPhone sales estimates, Apple made up for it with strong sales in the services segment and an 8% year-over-year growth in sales in China.
Amazon reported better-than-expected results, with a 11% increase in sales to $134.4bn in the second quarter and a quarterly profit of $6.7bn.

Apple revenues fall for third straight quarter as company invests heavily in AI

Key takeaways

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