Apple iPhones Sales Dip Despite New AI Features

Artificial intelligence is on the rise, and many big players are searching for ways to incorporate it into new devices. Apple iPhone rolled out new AI features for mobile devices at the end of last year, but the responses were lukewarm at best. 

Apple's chief executive, Tim Cook said the new features helped increase sales in the countries where they were available, including the United States. However, iPhone sales dropped to about 1% overall compared with last year, to $69.1bn (£55bn). Several reasons for this include the sales drop in China and potential tariffs on sales by President Donald Trump.

Trump called for tariffs of up to 60% on products made in China, where Apple does much of its manufacturing. However, it's still unclear when these plans will take effect. Still, Tim Cook and Apple are monitoring the situation. 

The move to AI features has been a gradual one for Apple products and investors are hoping this will reignite the slow pace of sales, as customers hold onto their phones and other products for longer. Customers can expect more AI features in different languages this year. 

Some of the features have not come without controversy. One of them is the AI news roundup alerts, which have come under for making repeated mistakes in their summaries of news headlines, those on major newscasters like the BBC. The feature was eventually suspended after persistent criticism. 

For now, Apple has seen a record number of new iPhone purchases from people who already own older versions, rising to 4% to $124.3bn. This figure was boosted by a jump in its computer sales and strong growth in its services business, which includes Apple TV and Apple Pay. However, Apple must improve its AI rollouts, focusing on new products to maintain its edge.