Apple’s latest earnings report showed the company’s strongest holiday quarter yet, despite iPhone sales not meeting expectations. CEO Tim Cook attributed the difference to the availability of Apple Intelligence, a software upgrade that provides AI-powered features on iPhones.
Cook stated that iPhone sales were stronger in countries where Apple Intelligence was available. Currently, this software is only accessible in a handful of English-speaking countries. In contrast, China, where Apple Intelligence is not available, saw a decline in iPhone 16 sales.
According to Cook, three factors contributed to the decline in China: a change in channel inventory, the lack of Apple Intelligence, and a national subsidy issued by China after the quarter ended that stimulated some Apple product sales. This suggests potential growth in upcoming quarters if Apple Intelligence is released in China.
The correlation between iPhone 16 sales and Apple Intelligence has sparked debate among consumers. However, Cook’s narrative appears to suggest a causal link between the software’s availability and iPhone sales. As such, any short-term growth may be limited until Apple announces its plan for releasing Apple Intelligence in China.
Source: https://9to5mac.com/2025/01/30/heres-why-tim-cook-says-not-to-worry-about-huge-iphone-miss-in-china