Apple's Sales Forecasts Signal Bright Future Amid AI Advancements

Apple shares climbed following a forecast of higher-than-expected sales, driven by recovering iPhone sales with the introduction of AI features. Despite recent challenges in China, Apple's diverse product lineup, including iPads and Macs, boosted overall sales and profits, while services and wearables segments continued to thrive.

Apple's stock experienced a notable increase during after-market trading on Thursday, following the tech giant's projection of sales surpassing Wall Street expectations. This optimistic outlook indicates a potential rebound in iPhone sales, thanks to new artificial intelligence features. Executives anticipate a sales rise in the low- to mid-single digit range for the current quarter.

The just-concluded fiscal first quarter witnessed Apple exceeding Wall Street's profit expectations despite challenges in the Chinese market and delayed AI feature rollouts. Revenues were buoyed by successful iPad and Mac sales, which were powered by advanced new chips, leading to customer upgrades.

Apple's services business maintained robust growth, while its wearables segment, though slightly under expectations, also contributed significantly to overall revenue. CEO Tim Cook noted the influence of Apple Intelligence on boosting device sales and teased upcoming enhancements in more languages while navigating regulatory landscapes in China.

(With inputs from agencies.)