Apple Stock promotes the sale of artificial intelligence (AI). Here’s why it’s not crushed by the launch of Deepseek:
News of last week’s release of Deepseek spread rapidly into the market, wiping out 16% nvidiaValue while affecting many other AI (AI) stocks.
However, some strains have endured Deepseek Avalanche in particular apple(NASDAQ: AAPL). Not only that, it also concluded the week with a well-received revenue report, and the world’s most valuable company sits in a great perspective to profit from advances in AI.
As a large and complex company, Apple’s business always has many moving parts. The good outweighed the bad points of the revenue report, at least from a market perspective. This is why the company is standing strong in AI meltdowns and why it is ready to benefit from Deepseek’s new, low-cost AI.
Apple’s first quarter of 2025 (ends December 28th) had two pains. iPhone sales fell 1% from the previous year, falling below analyst expectations, while China’s revenue fell 11% from the previous year. Management said phone sales were low due to production issues in China.
Image source: Getty Images.
But it didn’t overshadow all the positivity of the quarter. Total revenues rose 4% year-on-year to $124.3 billion, while earnings per share (EPS) rose 10% to $2.40. The consensus estimates were $124.1 billion in revenue and $2.35 in EPS, which Apple easily surpassed them.
It’s a service business consisting of app store purchases and subscriptions, and we get some of its best results. Revenue rose 14% year-on-year to $26.3 billion, surpassing expectations of $26.1 billion. Services also have a high margin, with the total margin of 46.9% in the first quarter, up from 45.9% last year.
On top of that, the market is keen on Apple’s opportunities in AI.
The company offers a suite of AI services built into the ecosystem. Apple Intelligence is already rolling out in certain regions, and iPhone total revenues have slipped, but it has risen in these regions, including the US, where Apple Intelligence is already available on iPhones. CEO Tim Cook The business said it reached “the highest iPhone revenue record ever in numerous markets and regions.”
Upgraded Services Some of the services provided by Apple Intelligence are creation tools, text prompted images and videos, and image cleanup. While it may not sound different to other AI systems at first glance, it strengthens the company’s ecosystem.
The company is all about user experiences, with differentiated technologies available only on devices. Users usually stick to Apple products, bringing new buyers will have a higher lifetime value for each customer. People who don’t have any of the company’s products may have access to similar AI functions in different apps, but that’s exactly those are different apps. Apple’s AI capabilities are integrated into your device to upgrade your complete experience.
There are several reasons why you’re bullish about Apple and its AI systems. Although it is launching slower than some of its rivals, it is not a threat to launch DeepSeek because it spends less. Management aims to provide a similar approach to cost-effective AI spending.
Furthermore, if this technology becomes more common at a cheaper price, experts expect many AI generations to occur through APIING products. The company’s fans will be involved with AI through the Apple ecosystem and will be particularly involved with mobile phones as the business invests in Apple Intelligence on iPhones.
Some experts have denied the need to upgrade your iPhone less on vacation, as the device is getting much better and very quickly. It can hurt sales in the short term, but providing a better product is ultimately something that will keep customers in the long term of the company’s ecosystem.
Announce new features at Apple Intelligence and roll it out in more regions, that will be boosted Stock Investment Thesis For long-term investors.
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