Apple is betting that its new artificial intelligence (AI) services will boost demand for the iPhone.
The Cupertino-based company expects to ship at least 90 million iPhone 16 units when it launches later this year, up roughly 10% from the 81 million iPhone 15 units shipped in the second half of 2023, according to Bloomberg.
Apple's new AI features for iOS include intelligent writing tools that help you proofread, summarize and rewrite text across apps, enhanced notifications prioritise important messages and the Mail app offers “smart replies”.
Read more: FTSE 100 live: UK economy grows more than expected, European markets rise, pound hits four-month high
Apple has announced that it will begin beta testing Apple Intelligence in iOS 18, iPadOS 18 and macOS Sequoia this fall, while an upgraded version of Siri is expected to arrive in early 2025.
It remains to be seen how Apple Intelligence will work in China, as Apple has yet to sign contracts with Chinese AI companies. OpenAI's ChatGPT, which will be available in the US and other countries, will not work in China.
Tata Consultancy Services (TCS.NS)
Tata Consultancy Services (TCS) shares fell on Thursday as the first quarter (Q1) earnings season of Nifty 50 (^NSEI) companies is set to begin after the close.
India's largest IT services company is expected to report revenue growth faster than in the past five quarters, although rising wages may reduce profits and margins.
Read more: How to invest in Indian stock market
“Revenue growth is expected to be driven by increased execution of order commitments on the back of favorable growth in the last quarter,” Kotak Securities said in a preview note on the IT sector.
Costco (COST)
Shares in the membership-based retailer rose in premarket trading after the company announced it would increase fees for the first time since 2017.
Starting Sept. 1, membership fees will rise to $65 and $130 for individual and executive memberships, respectively, from $60 and $120, an 8% increase for both categories. Costco said the price increases will help it reach 52 million members.
Of the 74.5 million households that hold the card, roughly half are executive members who pay a high annual fee and receive 2% cash back on in-store and online purchases.
The company posted net income of $1.68 billion for the 12 weeks ended May 12, a figure that included $1.12 billion in membership fees received during the quarter. Costco earned nearly $4 billion in annual membership fees for the fiscal year that ended in early September, up 8% from a year earlier.
The story continues
Sales for the five weeks ending July 8 increased 7.4% year-over-year to $24.48 billion, bringing the year-to-date total to $210.55 billion, up 6.9% year-over-year.
Dr. Martens (DOCS.L)
Dr Martens shares soared after the company reassured shareholders that trading since the start of the financial year was progressing in line with expectations.
“As always, the first quarter is the smallest period of our financial year and represents the end of the spring/summer season. As we communicated in our recent 2024 results update, the current financial year is heavily weighted in the second half, particularly from a profit perspective,” the company said in a short statement ahead of its annual general meeting in London later on Thursday.
The traditional British shoemaker said the upcoming autumn/winter season would be a “key focus” for the group, with performance likely to be heavily dependent on the second half of the year.
The company is targeting growth in direct-to-consumer sales in the United States in the second half of the year.
“Work on our cost-saving plans continues and we will provide a detailed update at our half-year results in November.”
The stock price plummeted earlier this year following a shock profit warning.
Download the Yahoo Finance app, available for Apple and Android.
