Apple's AI Forecast Boosts Shares Amidst China Challenges

Apple shares rose as the company forecasted higher-than-expected sales, driven by new AI features. Despite weak iPhone and China sales, iPad and Mac sales exceeded expectations. Apple's cautious AI rollout and ongoing challenges in China remain key areas of focus for future growth.

In a strong bid to recover from recent setbacks, Apple's shares rose by 3.5% in after-market trading Thursday after the tech giant projected higher quarterly sales than Wall Street analysts anticipated. The optimism stems largely from anticipated iPhone sales recovery facilitated by Apple's introduction of advanced artificial intelligence features.

The fresh forecast positions Apple for a promising fiscal second quarter, expecting sales to rise in the low- to mid-single digits, even after adjusting for foreign exchange impacts. This new outlook is seen as outperforming the previous 5% rise expected by market experts. Apple's leap in iPad and Mac sales, empowered by newer chip technologies, helped strengthen its overall fiscal performance.

However, the company's caution in rolling out AI features has dampened iPhone sales, particularly in China, where strong local competition persists. CEO Tim Cook notes that the features, branded as 'Apple Intelligence,' have yet to debut in China due to regulatory challenges, with no specific timeline available for their release.

(With inputs from agencies.)