Sales at Apple rebounded this spring, overcoming weakness in China and a dip in iPhone sales, delivering some good news to jittery financial markets.
Intel shares fell more than 19% as the chipmaker rolled out a cost-cutting plan that includes cutting more than 15,000 jobs in response to falling sales. 4,444 shares of Amazon, the largest e-commerce company, also fell more than 4 percent …
That’s down from the previous three months and is expected to weaken further in the coming months, putting pressure on interest rates even as the company increases its investment in areas such as artificial intelligence (AI).
Overall, the Dow Jones Industrial Average fell 1.2%, the S&P 500 fell nearly 1.4% and the Nasdaq fell 2.3%.
Asian stocks also fell on Friday. Japan’s Nikkei was the worst-performing index, finishing the day down 5.8%.
Bets on artificial intelligence have roiled the market in recent weeks as investors weary of the high price tag for such investments and companies see the lack of competitive AI as a serious blow.
Intel is one of the companies that has fallen out of favor due to its rivalry with Nvidia, known for its intellectual capital.
The company warned that the second half of the year will be worse than expected, saying that sales fell by 1% in the three months to June.
CEO Pat Gelsinger wrote in a letter to employees: “Our revenue is not growing as expected, and we are not taking advantage of powerful opportunities such as intelligent intelligence.
This situation requires ‘courage’ and the company needs to ‘for example’. Change the way we work.”
Apple, by contrast, said that software companies that encourage their customers to improve their devices are well placed to benefit from changes based on AI development.
The company recently released something new called “Apple Intelligence” for developers in the United States.
The new system makes it easier for iPhone users to transcribe and record phone conversations, create personalized emojis when sending messages, have more conversations with the company’s voice assistant Siri, and more.
Apple says more will be released later this year, but only on its new devices.
Apple CEO Tim Cook said the new features will provide “another reason to upgrade.” The company said it expects more growth in the coming months.
“We remain excited about the potential of AI and will continue to invest heavily in this technology,” he said.
iPhone sales fell 1% between April and June, driven by higher Mac and iPad sales.
Apple also reported revenue for its Services segment, which includes products such as Apple Pay and Apple News.
