iPhone Remains Core To Tech's Future, Says Cook

Apple Inc. AAPL CEO Tim Cook has downplayed the threat of screenless AI devices, calling them complementary to the iPhone—even as former design chief Jony Ive teams up with OpenAI to build next-generation AI hardware.

iPhone Remains Core To Tech’s Future, Says Cook

During Apple’s fiscal third-quarter earnings call on Thursday, Bank of America analyst Wamsi Mohan asked Cook how Apple is preparing for a world where AI could diminish reliance on screens.

Cook responded by reaffirming the iPhone’s central role in users’ lives.

“When you think about all the things an iPhone can do—from connecting people to bringing app and game experiences to life, to taking photos and videos, to helping users explore the world and conduct their financial lives and pay for things—it’s difficult to see a world where iPhone’s not living in it,” Cook said.

He added, “That doesn’t mean we are not thinking about other things as well… but I think that the devices are likely to be complementary devices, not substitution.”

See Also: Apple Faces 18-Month Deadline To Deliver On AI, Says Analyst

Jony Ive And OpenAI Are Working On AI-Powered Device

His comments indirectly addressed the developments involving Ive, Apple’s former chief design officer, who left in 2019.

OpenAI has completed a $6.5 billion acquisition of Ive’s AI hardware startup, io Products and tapped his design firm LoveFrom to take on “deep design and creative responsibilities” in building a new class of AI-native hardware.

OpenAI CEO Sam Altman and Ive are reportedly working on a pocket-sized, screen-free, context-aware device designed to understand user behavior and surroundings—potentially redefining how users interact with technology.

Gene Munster Surprised By Cook’s Acknowledgment

Gene Munster, managing partner at Deepwater Asset Management, noted on X that he was surprised Cook even acknowledged the development. “This tells me maybe Apple would be ok working with and also competing with Jony’s device,” he said.

Ive’s return to hardware—especially in partnership with one of Apple’s biggest AI rivals—marks the first real design-led competition to the iPhone in years.

Apple Beats On Revenue And EPS, But AI Concerns Persist

While Apple beat revenue and EPS expectations in the third quarter, the company has faced criticism for lagging in generative AI, amid a wave of executive departures.

The company reported fiscal third-quarter revenue of $94 billion, surpassing analyst expectations of $89.04 billion. Earnings came in at $1.57 per share, ahead of the estimated $1.42 per share.

iPhone sales totaled $44.58 billion, up from $39.3 billion in the same quarter last year.

Price Action: Apple shares rose 2.42% to $212.59 in after-hours trading, according to Benzinga Pro.

According to Benzinga’s Edge Stock Rankings, AAPL maintains strong upward momentum in the short and medium term, but shows a downward trend over the long term. Additional performance details can be found here.

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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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