Apple’s overall revenue rose by about 5% to $85.8 billion, surpassing Wall Street expectations. However, iPhone sales fell 1% to $39.3 billion for the second consecutive quarter ending in June.
In China, Apple’s revenue dropped over 6% due to competition from Huawei, but its service unit provided a cushion, increasing sales by over 14% to $24.2 billion.
The company is betting on new AI features to boost future sales and catch up to rivals in AI advancements like Microsoft and Google’s Alphabet.
Meanwhile, Amazon’s second-quarter sales rose 10% to $148 billion, and its $13.5 billion profit exceeded expectations.
However, shares dropped 7% after forecasting weaker revenue growth and announcing higher spending to meet AI demand.
Amazon’s ad business grew 20% to $12.77 billion, and Prime Day sales reached a record $14.2 billion, according to Adobe Analytics. Its cloud computing unit, Amazon Web Service, saw revenue grow 19% to $26.28 billion, indicating a solid rebound from a slowdown in 2023.