The latest quarterly results from Apple unveiled a strong bottom line, though iPhone sales showed slight declines. But the iPad made a surprising recovery with 24% increases in sales, as forays into artificial intelligence promise more growth. In the words of CEO Tim Cook, Apple still remains very optimistic about AI’s potential and future product updates.

Apple just announced its latest quarterly financial results, and they’re mostly positive. Despite the somewhat lower-than-anticipated iPhone sales, the company’s performance was doing well. It now appears that this could be because of the brilliant revival of the iPad and the increased attention toward Artificial Intelligence (AI) from Apple.

Sales of its flagship product, the iPhone, saw slight declines. Revenues from iPhone sales were $39.3 billion, a 1% decline compared to last year’s same quarter. This may sound worse than it is, for Apple has other huge business areas going for it.

The iPad stands out as one of the big successes from Apple’s latest results. The iPad made a stunning comeback, with its sales going up by almost 24%. Revenues from sales of iPads amounted to $7.16 billion, more than what analysts had estimated. New models launched in the period have contributed to the surge in the sale of iPads. Apple had launched a new iPad Pro and a bigger iPad Air back in May. For two years, there was very little that was new about the iPad line, but these new releases clearly reinvigorated interest in the product.

Apple CEO Tim Cook made sure to mention the ongoing focus on Artificial Intelligence, which Apple simply refers to as Apple Intelligence. This focus on AI was one of the key features that Apple highlighted in the new iPad models and remains one of the key strategies at Apple. Tim Cook said he was excited by the potential for AI to improve customer experience, saying that the company would continue to invest heavily in it.

“We are very excited about Apple Intelligence, and we remain incredibly optimistic about the extraordinary possibilities of AI and its ability to enrich customers’ lives,” said Tim Cook. “We will continue to make significant investments in this technology and dedicate ourselves to the innovation that will unlock its full potential.”

During the earnings call, when asked about new hardware updates to support the new AI features, Tim Cook responded that an iPhone has to be an iPhone 15 Pro or Pro Max to use the new AI features. He did not confirm whether the next iPhones, due September, will be fully capable of supporting those new AI tools.

Apart from the success of the iPad and focusing on AI, Tim Cook was also excited about the Vision Pro headset. It is expected to launch in more countries soon outside the United States. Apple will not, however, release the sales figures of the Vision Pro separately. It still remains to be seen whether the product has been a success in the markets.

While there were several positives in Apple’s latest results, not all segments fared equally well. Sales of Apple wearables, which include the Apple Watch and AirPods, declined slightly with revenues falling to $8.1 billion, down by 2.3%. Although there was a slight setback on this front, the bigger picture looked good for Apple.

It also posted growth in the services division, which contributed greatly to its revenues. This includes Apple Music, Apple TV+, and even the App Store. These service increases helped offset the decline of iPhone sales, reflecting the strength of a diversified Apple product lineup.

Looking ahead, Apple continues to focus on innovation and growth. Its commitment to artificial intelligence and the fact that new models of the iPad have been a hit prove that Apple will never stop trying to bring better products and services to the market. Tim Cook’s optimism about the future of AI and the possible creation of new products is indicative of future leadership for Apple in the technology market.

The last set of financial results were nothing less than proof of Apple’s sure-footedness amidst challenges. A strong rebound by the iPad, and further growth from focus on AI, offsets a slight dip in sales of its iPhones.