Apple CEO Tim Cook boasts of future AI plans after earnings beat

May 3, 2024

40 2 minutes read

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Apple (AAPL) CEO Tim Cook took time during the company’s second quarter earnings call on Thursday to drum up excitement for the iPhone maker’s upcoming generative AI offerings.

In his remarks, Cook told listeners that the company is bullish about the opportunities generative AI has to offer and that it is making significant investments 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 hardware, software, and services integration; groundbreaking Apple silicon with our industry leading neural engine; and our unwavering focus on privacy,” Cook said.

Ahead of the call, Apple reported better-than-anticipated earnings and revenue, though iPhone sales fell about 10% year over year.

CUPERTINO, CALIFORNIA - SEPTEMBER 12: Apple CEO Tim Cook holds up a new iPhone 15 Pro during an Apple event on September 12, 2023 in Cupertino, California. Apple revealed its lineup of the latest iPhone 15 versions as well as other product upgrades during the event. (Photo by Justin Sullivan/Getty Images) — Apple CEO Tim Cook holds up a new iPhone 15 Pro during an Apple event on Sept. 12, 2023 in Cupertino, Calif. (Justin Sullivan/Getty Images) (Justin Sullivan via Getty Images)

Apple will host its annual WWDC developer conference in June, which should serve as the launchpad for the company’s generative AI ambitions. Analysts hope generative AI could kick off another iPhone sales supercycle. But, so far, the technology doesn’t appear to be driving sales of competing smartphones from the likes of Samsung and Google.

Cook has been relatively tightlipped regarding Apple’s generative AI plans, dropping small tidbits about the company’s investments here and there. This is one of the first times he’s come out so strongly about how Apple will set itself apart from its Big Tech rivals in the generative AI space.

Wall Street is waiting on tenterhooks for Apple’s generative AI announcements. The company hasn’t debuted any generative AI products since the technology exploded in popularity in late 2022.

Rivals including Amazon, Google, Meta, and Microsoft, meanwhile, have rolled out a series of generative AI capabilities and products including chatbots and search engine improvements. Microsoft, in particular, has added generative AI directly to Windows 11 via the Windows 11 Copilot.

If Apple’s generative AI plans are going to live up to Wall Street’s expectations, it will need to enable some kind of must-have features that users can’t get on their existing devices. We’ll find out what Apple’s cooking up next month.