Apple boss Tim Prepare dinner introduced the corporate was once making an investment closely in synthetic intelligence (AI) on Thursday as the corporate introduced its 3rd consecutive quarter of declining revenues, the corporate’s maximum extended gross sales hunch since 2016.

Apple’s gross sales for the fiscal 3rd quarter finishing 1 July fell 1.4% to $81.8bn. Over the quarter the corporate made a benefit of $19.9bn, upper than analysts had anticipated.

IPhone gross sales fairly overlooked analyst estimates, however have been made up for via robust gross sales within the products and services section that incorporates Apple TV+ and via gross sales in China that grew 8% yr over yr.

Apple stocks have been flat in prolonged buying and selling after the consequences.

Apple leader govt Tim Prepare dinner instructed Reuters that the greater R&D spending was once partly pushed via paintings on generative synthetic intelligence, the similar box this is riding spending at its large generation opponents, Alphabet and Microsoft.

“We’ve been doing analysis throughout quite a lot of AI applied sciences, together with generative AI, for years. We’re going to proceed making an investment and innovating and responsibly advancing our merchandise with those applied sciences to assist enrich other folks’s lives,” Prepare dinner mentioned. “Clearly, we’re making an investment so much, and it’s appearing up within the R&D spending that you just’re taking a look at.”

Apple’s analysis and construction spending hit $22.61bn for the fiscal yr to this point, about $3.12bn upper than at this level within the earlier yr.

The scoop got here as Amazon reported effects that have been higher than Wall Side road’s expectancies.

Amazon speeded up income enlargement in the second one quarter. Gross sales greater 11% to $134.4bn, in comparison to estimates of $131.5bn from analysts polled via Refinitiv. The corporate reported a quarterly benefit of $6.7bn, just about double what analysts anticipated.

Amazon now expects an additional summer time income bump. It mentioned its largest gross sales day ever was once a part of closing month’s advertising blitz for loyalty consumers referred to as Top Day.

Stocks rose 6% in after-hours business.

• Reuters contributed to this tale