Apple CEO Tim Cook announced on the 1st (local time) that he would launch generative artificial intelligence (AI) software at the end of this year. The statement was made on a day when sales were falling for four consecutive quarters, and is interpreted as a plan to overcome the sluggish Chinese market.
According to AFP, Cook said in a conference call announcing last year's fourth quarter performance, "We will continue to invest in other technologies that will shape the future," and "This includes AI, in which we are investing a huge amount of time and effort."
It is rare for Cook to publicly mention ‘Apple-style AI’. Last year, there was a craze for the launch of generative AI in Silicon Valley, led by ChatGPT, but Apple has refrained from making official comments, let alone unveiling new products. Analysts participating in the conference call asked for more detailed information, but Cook remained silent, saying, “I will share details of the work being done in this area towards the end of the year.”
In relation to this, on this day, The Verge, an American information technology (IT) media outlet, interpreted that Cook foreshadowed the installation of generative AI in Apple's operating system (OS) ‘iOS 18’, which will be released this fall. This is because Apple believes that it can no longer delay as generative AI was fully introduced in Samsung Electronics' Galaxy 24, which was released last month. Bloomberg News also predicted that iOS 18 will be the largest update in Apple history.
Apple announced in a conference call today that overall sales in the fourth quarter of last year recorded $119.6 billion (approximately 158 trillion won), a 2% increase compared to the same period last year. As a result of 4 consecutive quarters of declining sales, the supply of Apple devices exceeded 2.2 billion units for the first time, and service and subscription revenue reached a record high ($23.1 billion), creating a sales inflection point.
However, Apple's stock price fell more than 3% in after-hours trading on this day as news spread that the company was performing poorly in China, the world's largest smartphone market. According to the London Stock Exchange Group (LSEG), Apple's sales in China in the fourth quarter of last year recorded $20.8 billion (approximately 27 trillion won), a 13% decrease compared to the same period last year, far below market expectations ($23.5 billion).
In September of last year, the Chinese government banned the use of foreign smartphones for public officials, and Huawei broke through US semiconductor sanctions and launched a smartphone capable of 5G mobile communications for the first time in three years, leading to 'patriotic consumption' in China. Because the wind blew. As if taking this into account, Apple's Chief Financial Officer (CFO) Luca Maestro predicted in a conference call today that sales in the first quarter could decline by at least $5 billion (approximately 6 trillion won) compared to the same period last year when the company was in the recovery phase from COVID-19.
Given the situation, Cook's unusual direct mention of AI on this day was seen as a calculated action to instill a more optimistic perception among investors. The market is also looking forward to Apple’s generative AI. AFP quoted analysts as saying, “Although Apple appears to be lagging behind in the AI race, it is highly likely that it is quietly designing its own AI chip to be installed in the Mac series.” The Verge predicted, “Apple is likely to apply generative AI to iOS and macOS as well.”
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