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

Apple on Thursday disclosed its iPhone sales dipped slightly during the holiday-season quarter, signaling a sluggish start to the trendsetting company’s effort to catch up to the rest of Big Tech in the race to bring artificial intelligence to the masses.

Apple reported that iPhone sales for the quarter were down nearly 1% from the prior year to $69.1 billion, a miss from the $70.7 billion analysts were projecting, acc

Apple beat Wall Street's quarterly profit estimates on Thursday, but iPhone sales and China revenue for the holiday quarter were weak due to stiff Chinese competition and a slow rollout of artificial intelligence features.

Apple's earnings call is today at 5 pm ET. AAPL stock heads into the report down 4% YTD. Analysts are focused on services and China sales.

Apple reported $18.5 billion in sales in greater China last quarter, comfortably below consensus estimates of $20.9 billion.

Apple reported soft sales of its flagship iPhone during the holiday quarter, but still topped Wall Street forecasts for revenue and earnings per share.