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.

The company has heavily advertised AI features since the latest iPhones were released in September.

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.