Tim Cook insists Apple Intelligence is convincing people to upgrade — even if the features are underwhelming so far.

The tech giant’s sales of apps and services helped profit grow 7 percent from a year ago, even as the company contended with slumping sales in China.

Apple reported its latest quarterly earnings results Thursday, revealing all-time record-breaking sales for its October-December 2024 period.

Sales of Apple iPhones dropped the end of last year, as the tech firm's roll out of new artificial intelligence (AI) features was met with a lukewarm response. Chief executive Tim Cook said the new features helped to drive stronger sales in the countries where they were available, such as the US.

Apple's latest earnings were a mixed bag filled with slipping iPhone sales and countered by rising revenue. Reporting after the bell Thursday, the iPhone

Apple (AAPL) reported fiscal first-quarter earnings that topped estimates as its services revenue rose, though iPhone sales fell short. The iPhone maker’s revenue rose 4% year-over-year to a record $124.

Apple (NASDAQ:AAPL) shares edged lower after it reported its first quarter fiscal 2025 financial results on Thursday that demonstrated lower sales to China despite the Service segment reaching a record high.