Apple ( AAPL ) CEO Tim Cook took time during the company’s second-quarter earnings call Thursday to drum up excitement for the iPhone maker’s upcoming generative artificial intelligence offerings.
In his remarks, Cook told the audience that the company is highly optimistic about the possibilities offered by generative artificial intelligence and has made significant investments in the technology.
“We believe in the transformative power and promise of AI, and we believe we have the advantages that will set us apart in this new era, including Apple’s unique combination of seamless integration of hardware, software and services; groundbreaking Apple silicon with an industry-leading neural engine; and an unwavering focus on privacy.” ” said Cook.
Before the call, Apple reported better-than-expected earnings and revenue, even though iPhone sales fell nearly 10% for the year.
Apple will host its annual WWDC developer conference in June, which should serve as a launching pad for the company’s generative AI ambitions. Analysts hope that generative AI could trigger another iPhone sales supercycle. However, so far the technology is not boosting the sales of rival smartphones like Samsung and Google.
Cook has been relatively tight-lipped about Apple’s generative artificial intelligence plans, leaving little tidbits about the company’s investments here and there. It’s the first time he’s spoken so strongly about how Apple will differentiate itself from its Big Tech rivals in generative AI.
Wall Street awaits Apple’s generative AI announcements. Since the technology gained popularity in late 2022, the company hasn’t debuted any generative AI products.
Meanwhile, competitors including Amazon, Google, Meta and Microsoft have introduced a range of generative AI capabilities and products including chatbots and search engine enhancements. Microsoft notably added generative AI directly to Windows 11 through Windows 11 Copilot.
If Apple’s plans for generative AI are to live up to Wall Street’s expectations, it will have to enable some kind of must-have features that users can’t get on their existing devices. We’ll find out what Apple has in store next month.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter @DanielHowley.
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