- Tim Cook has said major AI announcements are coming.
- Analysts are hoping Apple's AI strategy can boost slumping iPhone sales.
- Wedbush's Dan Ives said Apple's AI efforts are set to drive a "supercycle" starting with the iPhone 16.
Tim Cook is still keeping his cards close to his chest when it comes to AI.
Analysts pushed the Apple CEO to talk about its upcoming generative AI announcements on Thursday's earnings call — with very little success.
Cook continued to keep a tight lid on all things AI, merely teasing big AI announcements in the "coming weeks." It's a standard play from the CEO, who has been hesitant to publicly discuss Apple's AI development.
Cook reiterated that the iPhone maker was "well positioned," saying there were "big opportunities" across Apple products for generative AI.
The remarks — and slightly better-than-expected numbers — appeared to reassure investors, with the stock climbing 6% premarket. A $110 billion share buyback also helped.
Wedbush analyst Dan Ives described the earnings call as a "drumroll moment," adding Apple looked set to unveil its long-awaited AI strategy at its Worldwide Developers Conference in June. Cook has previously promised to share details of the company's AI work later this year.
Ives said Apple's AI efforts were set to drive a "supercycle starting with iPhone 16 this fall."
iPhone issues
Apple needs to ride the generative AI wave.
It's had a rough year, struggling in China, been slapped with a massive fine, and is facing a lawsuit.
Now, despite beating Wall Street's pessimistic estimates, sales of its flagship product are declining. iPhone sales slumped by 10% in the past three months, with the company facing increasingly tough competition in key markets like China.
Investors are hoping that new generative AI features for its products can boost Apple's slumping smartphone sales.
Analysts have been scrambling for updates on Apple's AI progress for months, with some concerned that it's moved more slowly and fallen behind its Big Tech rivals.
In March, Brian Mulberry, a portfolio manager at Apple shareholder Zacks Investment Management, told The Wall Street Journal the company hadn't really made a "big splash in the AI space yet."
A month later, Apple's reported dismantling of two projects and teams only served to fuel concerns that the company had lost focus and was slipping behind rivals in critical areas.
Other Big Tech companies, including Google, Meta, and Microsoft, put AI front and center during recent earnings calls. For Google and Microsoft, investors cheered AI progress despite high spending on infrastructure.
The news of an upcoming announcement on Apple's progress is likely to bolster investor confidence.
Last month, a Bloomberg report that Apple was working on revamping its Mac lineup with new processors that forefront AI gave the stock a boost.
Representatives for Apple did not immediately respond to a request for comment from Business Insider, made outside normal working hours.