China's singles day shopping festival reveals a striking shift in smartphone supremacy. While Huawei and Xiaomi celebrate robust sales, Apple faces a 4% dip, signaling a captivating clash among industry giants.

Apple faces sales decline in China's singles day

Jumping on the artificial intelligence (AI) bandwagon, Apple CEO Tim Cook said that the Cupertino-based firm is investing heavily in AI even as the tech giant reported declining sales numbers.

The announcement was made on Thursday (Aug 3) as Apple recorded its third straight quarter of fall in sales and predicted a similar performance in the current period—the company’s most prolonged sales slump since 2016.

<h2>Weak iPhone sales</h2>

In the third fiscal quarter ending July 1, Apple’s sales fell 1.4 per cent to $81.8 billion, according to IBES data from Refinitiv.&nbsp;

However, the company made a profit of $19.9bn over the quarter, higher than analysts had expected.

iPhone sales were weaker than the analyst estimates, but it was balanced by strong sales in the services segment that contains Apple&nbsp;TV+ and by sales in China that grew 8 per cent year over year, according to Reuters.

The iPhone sales in India also grew double-digits, however, the executives didn’t share the exact numbers.

<h2>Apple to invest heavily in generative AI</h2>

Speaking to the Reuters news agency, Tim Cook said that the company’s main focus is on generative artificial intelligence and added that a significant amount of R&amp;D has been dedicated to the field, which has been witnessing big spending by its technology rivals Alphabet and Microsoft.

“We’ve been doing research across a wide range of AI technologies, including generative AI, for years. We’re going to continue investing and innovating and responsibly advancing our products with these technologies to help enrich people’s lives,” Cook said.

“Obviously, we’re investing a lot, and it is showing up in the R&amp;D spending that you’re looking at.”

Apple has upped its research and development spending to around $22.61bn for the fiscal year so far, which is about $3.12bn higher than at this point in the previous year.

Apple has pegged the gross profit margin in the September quarter at 44 per cent to 45 per cent, above analyst expectations of 43.4 per cent, according to Refinitiv data.

While Apple expects growth in its service segment that contains Apple TV+, iPad and Mac sales will fall by "double digits," Apple Chief Financial Officer Luca Maestri told Reuters.

(With inputs from agencies)

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Jumping on the artificial intelligence (AI) bandwagon, Apple CEO Tim Cook said that the Cupertino-based firm is investing heavily in AI even as the tech giant reported declining sales numbers.

Jumping on the artificial intelligence (AI) bandwagon, Apple CEO Tim Cook said that the Cupertino-based firm is investing heavily in AI even as the tech giant reported declining sales numbers. The announcement was made on Thursday (Aug 3) as Apple recorded its third straight quarter of fall in sales and predicted a similar performance in the current period—the company’s most prolonged sales slump since 2016. Weak iPhone sales In the third fiscal quarter ending July 1, Apple’s sales fell 1.4 per cent to $81.8 billion, according to IBES data from Refinitiv. However, the company made a profit of $19.9bn over the quarter, higher than analysts had expected. iPhone sales were weaker than the analyst estimates, but it was balanced by strong sales in the services segment that contains Apple TV+ and by sales in China that grew 8 per cent year over year, according to Reuters. The iPhone sales in India also grew double-digits, however, the executives didn’t share the exact numbers. Apple to invest heavily in generative AI Speaking to the Reuters news agency, Tim Cook said that the company’s main focus is on generative artificial intelligence and added that a significant amount of R&D has been dedicated to the field, which has been witnessing big spending by its technology rivals Alphabet and Microsoft. “We’ve been doing research across a wide range of AI technologies, including generative AI, for years. We’re going to continue investing and innovating and responsibly advancing our products with these technologies to help enrich people’s lives,” Cook said. “Obviously, we’re investing a lot, and it is showing up in the R&D spending that you’re looking at.” Apple has upped its research and development spending to around $22.61bn for the fiscal year so far, which is about $3.12bn higher than at this point in the previous year. Apple has pegged the gross profit margin in the September quarter at 44 per cent to 45 per cent, above analyst expectations of 43.4 per cent, according to Refinitiv data. While Apple expects growth in its service segment that contains Apple TV+, iPad and Mac sales will fall by "double digits," Apple Chief Financial Officer Luca Maestri told Reuters. (With inputs from agencies) WATCH WION LIVE HERE

Apple sales slump continues as it unveils its AI plans

Stronger<a href="http://www.wionews.com/business-economy/apple-says-it-sold-fewer-iphones-but-made-record-profit-31535"> iPhone prices and hints by Apple Inc</a> on Thursday that it could return more than half of its $285 billion in cash to shareholders eased concerns among investors, even as the world`s biggest technology company gave a disappointing revenue outlook for the current quarter.

 
Apple also reported it sold fewer iPhones over the holiday quarter than Wall Street had expected.&nbsp;

 
But the revenue outlook for the first three months of 2018 &quot;was not as bad as some feared,&quot; said Jun Zhang of Rosenblatt Securities Inc. Apple&#39;s comments about plans for its $163 billion in net cash helped boost shares 3.3 percent to $173.48 in after-the-bell trading.

 
&ldquo;Over time, we are trying to target a capital structure that is approximately net neutral. We will have approximately the same level of cash and debt on the balance sheet,&rdquo; Apple`s chief financial officer, Luca Maestri, told Reuters in an interview.

 
&ldquo;We&rsquo;re going to take that balance down from $163 billion to zero,&quot; Maestri said, referring to Apple`s current level of cash net of debt.

 
He did not say whether the reduction in net cash would come in the form of returning capital to shareholders, capital expenditures or acquisitions.

 
The cash plans are a &quot;pleasant surprise,&quot; Brian Colello, an analyst at Morningstar Inc, said. &quot;This goes a bit against Apple&rsquo;s historically conservative capital structure.&quot;

 
Trip Miller, managing partner at Gullane Capital Partners and an Apple investor, said the move to a level balance sheet was good news. &quot;Let`s face it, this cash has been doing nothing for us over the last six years,&quot; he said.

 
Apple forecast revenue of $60 billion to $62 billion and gross margins of between 38 percent and 38.5 percent for its fiscal second quarter ending in March. Analysts were expecting $65.7 billion in sales and a gross margin of 38.9 percent for the March quarter, according to Thomson Reuters I/B/E/S, though some had forecast sales as low as $60 billion.

 
Thrivent Financial analyst Peter Karazeris said the low revenue forecast had been expected by many analysts and investors following a string of &ldquo;credible reports&rdquo; that Apple had cut parts orders.

 
&quot;I&rsquo;m happy we&rsquo;ve gotten the bad news that I was expecting guided into the stock. It was probably a little overbaked,&quot; he said. &quot;Now we`re focusing on metrics that really matter like free-cash generation and shareholder returns.&quot; Thrivent holds Apple shares.

 
Bright spots in the fiscal first quarter ended Dec. 30 included average selling prices for the iPhone that topped Wall Street predictions, at $796 versus expectations of $756. The strong prices offset unit sales of iPhones that missed Wall Street expectations, coming in at 77.3 million units versus estimates of 80 million.

 
&ldquo;It was really driven by the success of the iPhone X and also the iPhone 8 and iPhone 8 Plus,&rdquo; Maestri told Reuters of the pricing strength. &ldquo;The new lineup has done incredibly well.&quot;

 
The company posted revenue of $88.3 billion and profit of $3.89 per share, from $78.4 billion and $3.36 per share a year earlier. The results beat analyst expectations of revenue of $87.3 billion and profits of $3.86 per share.

 
Apple`s services business, which includes Apple Music, the App Store and iCloud, grew 18 per cent to $8.4 billion, missing analyst expectations of $8.6 billion. Maestri said the lower services revenue was because the holiday quarter was only 13 weeks rather than 14 weeks.

 
The services revenue was down slightly from $8.5 billion the quarter before.

 
&quot;That`s something to watch as we roll further into 2018,&quot; said Miller of Gullane Capital. &quot;Does that continue to stagnate, or was that a one-time bump in the road?&quot; 
Maestri also said Apple`s installed base of active devices reached 1.3 billion, 30 per cent higher than two years ago and representing an expansion of potential customers for the services business.

 
Apple said it expected its tax rate for the March quarter to be 15 per cent following changes in US&nbsp;tax law. The company said last month it plans to make a one-time tax payment of $38 billion on its overseas cash and has a five-year, $30 billion US&nbsp;capital expenditure plan.&nbsp;

 
The company did not say how much of its overseas cash it would bring back to the United States in the short term and gave no new information about its capital return program, which it typically updates each April.

Apple reported it sold fewer iPhones over the holiday quarter than Wall Street had expected.

Stronger iPhone prices and hints by Apple Inc on Thursday that it could return more than half of its $285 billion in cash to shareholders eased concerns among investors, even as the world`s biggest technology company gave a disappointing revenue outlook for the current quarter. Apple also reported it sold fewer iPhones over the holiday quarter than Wall Street had expected. But the revenue outlook for the first three months of 2018 "was not as bad as some feared," said Jun Zhang of Rosenblatt Securities Inc. Apple's comments about plans for its $163 billion in net cash helped boost shares 3.3 percent to $173.48 in after-the-bell trading. “Over time, we are trying to target a capital structure that is approximately net neutral. We will have approximately the same level of cash and debt on the balance sheet,” Apple`s chief financial officer, Luca Maestri, told Reuters in an interview. “We’re going to take that balance down from $163 billion to zero," Maestri said, referring to Apple`s current level of cash net of debt. He did not say whether the reduction in net cash would come in the form of returning capital to shareholders, capital expenditures or acquisitions. The cash plans are a "pleasant surprise," Brian Colello, an analyst at Morningstar Inc, said. "This goes a bit against Apple’s historically conservative capital structure." Trip Miller, managing partner at Gullane Capital Partners and an Apple investor, said the move to a level balance sheet was good news. "Let`s face it, this cash has been doing nothing for us over the last six years," he said. Apple forecast revenue of $60 billion to $62 billion and gross margins of between 38 percent and 38.5 percent for its fiscal second quarter ending in March. Analysts were expecting $65.7 billion in sales and a gross margin of 38.9 percent for the March quarter, according to Thomson Reuters I/B/E/S, though some had forecast sales as low as $60 billion. Thrivent Financial analyst Peter Karazeris said the low revenue forecast had been expected by many analysts and investors following a string of “credible reports” that Apple had cut parts orders. "I’m happy we’ve gotten the bad news that I was expecting guided into the stock. It was probably a little overbaked," he said. "Now we`re focusing on metrics that really matter like free-cash generation and shareholder returns." Thrivent holds Apple shares. Bright spots in the fiscal first quarter ended Dec. 30 included average selling prices for the iPhone that topped Wall Street predictions, at $796 versus expectations of $756. The strong prices offset unit sales of iPhones that missed Wall Street expectations, coming in at 77.3 million units versus estimates of 80 million. “It was really driven by the success of the iPhone X and also the iPhone 8 and iPhone 8 Plus,” Maestri told Reuters of the pricing strength. “The new lineup has done incredibly well." The company posted revenue of $88.3 billion and profit of $3.89 per share, from $78.4 billion and $3.36 per share a year earlier. The results beat analyst expectations of revenue of $87.3 billion and profits of $3.86 per share. Apple`s services business, which includes Apple Music, the App Store and iCloud, grew 18 per cent to $8.4 billion, missing analyst expectations of $8.6 billion. Maestri said the lower services revenue was because the holiday quarter was only 13 weeks rather than 14 weeks. The services revenue was down slightly from $8.5 billion the quarter before. "That`s something to watch as we roll further into 2018," said Miller of Gullane Capital. "Does that continue to stagnate, or was that a one-time bump in the road?" Maestri also said Apple`s installed base of active devices reached 1.3 billion, 30 per cent higher than two years ago and representing an expansion of potential customers for the services business. Apple said it expected its tax rate for the March quarter to be 15 per cent following changes in US tax law. The company said last month it plans to make a one-time tax payment of $38 billion on its overseas cash and has a five-year, $30 billion US capital expenditure plan. The company did not say how much of its overseas cash it would bring back to the United States in the short term and gave no new information about its capital return program, which it typically updates each April.

Apple's revenue outlook not as bad as some feared: Analysts

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Apple faces sales decline in China's singles day

Apple sales slump continues as it unveils its AI plans

Apple's revenue outlook not as bad as some feared: Analysts