Apple Unveils Generative AI Tools Amid Mixed Investor Reactions

According to Decrypt, Apple CEO Tim Cook announced the launch of new generative AI tools integrated into the company's flagship products. Cook expressed enthusiasm about the potential of generative AI, stating, 'This is just the beginning of what we believe generative AI can do, and I couldn’t be more excited for what's to come.' Despite this, Apple stock fell 1.8% to $225.91 by the end of the trading day and continued to decline by another 1.8% to $221.90 in after-hours trading, as reported by Google Finance. The decline followed the release of Apple's quarterly results, which showed a modest increase in sales but a significant drop in profits. Apple reported $94.9 billion in sales for the quarter, a 6% year-over-year increase, including $46.2 billion in iPhone sales. However, company profits fell 35.9% to $14.7 billion, primarily due to a $14 billion back tax payment in Ireland following a court ruling in September. The new AI tools, included in the iOS 18.1 update, offer features such as text summarization and rewriting, photo library searches using descriptions, and real-time phone call transcription and summarization. Early reviews of these tools have been mixed, with Wired describing the experience as 'flat' and the New York Times suggesting that 'the highly touted AI-transformed future still seems a long way off.' Axios noted that the product offered 'only modest improvements.' During a call on Thursday, Cook mentioned that additional features, including ChatGPT integration and Visual Intelligence, will be introduced in December. These updates will also include non-US English capabilities and foreign language support by April. Cook did not directly address whether the new AI tools had boosted iPhone sales but noted that iOS 18.1 was adopted twice as fast as iOS 17.1 during the same quarter last year. 'We’re getting a lot of positive feedback from developers and customers,' he said. The announcement comes as several tech giants, including Google and Microsoft, have revealed plans to incorporate AI models into their products, intensifying competition in the sector. Both companies reported better-than-expected results earlier this week. Amazon also announced earnings that surpassed analyst estimates, with CEO Andy Jassy attributing part of the success to the company's AI investments, noting significant growth in their AI business.