On Thursday, Apple Inc. (NASDAQ:AAPL) CEO Tim Cook said that while iPhone revenue was down 1%, on a constant currency basis, the tech giant grew compared to last year.

What Happened: During Apple's third-quarter earnings call, Cook expressed his excitement over the company's innovations, stating they are "unlocking new ways of working, learning, and tapping into the unlimited promise of human potential."

He also shared details about the company's third-quarter results, highlighting that the iPhone revenue stood at $39.3 billion, marking a 1% decrease year-over-year.

Despite the slight dip in iPhone revenue, Cook spoke about the positive customer feedback for the iPhone 15 lineup, praising its "incredible battery life, exceptional cameras, and unmatched power and performance."

He also highlighted the introduction of Apple Intelligence which is set to be included in the iOS 18 update.

"Apple Intelligence utilizes the power of our most advanced iPhones, the iPhone 15 Pro and Pro Max, offering a transformative set of capabilities," he stated.

Later in the call, when he was asked about the overview of the current iPhone replacement cycles, Cook refrained from giving any exact numbers.

Instead, he stated, "In terms of upgrade rates, it's very difficult mid-cycle to call upgrade rates."

Adding, "I would just say that with Apple Intelligence, we are very excited about the level of value that we're going to provide to users. And we believe that — that presents another reason for a compelling upgrade."

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Why It Matters: The introduction of Apple Intelligence was predicted to trigger a three-year iPhone upgrade cycle, potentially leading to a surge in the company's sales. This AI feature, compatible only with iPhone 15 Pro models or newer, was seen as a strategic move by Apple to boost device sales.

Despite the 1% dip in iPhone revenue, the third-quarter earnings beat expectations. Cupertino's revenue rose by 4.9% to $85.78 billion for the quarter, exceeding the average analyst estimate of $84.53 billion, according to Benzinga Pro data.

Price Action: At the time of writing, Apple shares were slightly down during the pre-market session reaching $218.19. The stock had closed Thursday's session down 1.68%, ending at $218.36.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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