CNBC's Steve Kovach joins 'Squawk on the Street' to discuss Apple earnings.

Cupertino

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

Apple has reported strong financial results, surpassing expectations in both its revenue from sales and earnings for the quarter. The tech giant celebrated record iPhone sales for September. However, its stock faced pressure due to underperformance in its services revenue, and investors noted the absence of guidance on forthcoming iPhone sales for the December quarter.

Tim Cook, Apple's CEO, provided some insight into the early days of iPhone 16 sales, reporting that initial figures surpassed those of the iPhone 15, which also exhibited strong sales. Despite the positive iPhone sales, the market's focus remained on Apple's AI ventures, especially the Apple Intelligence platform, which debuted recently. More users reportedly updated to the new software compared to the same period last year, suggesting a budding interest in Apple's AI capabilities.

As Apple Intelligence matures, the company is gradually integrating additional AI features across its platforms. An anticipated update in December could further advance this trend, featuring integration with popular AI chatbots like ChatGPT. Nonetheless, the impact of AI on iPhone demand remains uncertain, with Apple continuing to invest in expanding its AI function offerings.



Apple's AI demand remains in question

Apple shares under pressure despite a top and bottom line beat their and record September quarter iPhone sales Let's get to see Kovac live from San Francisco with more on this quarter Steve Hey there, Leslie. Yeah, Apple did beat expectations on the top and bottom lines But we're seeing the stock under pressure today because services revenues missed and no guidance really on iPhone sales For the December quarter and that's really all anyone wanted to hear on the call last night Will Apple intelligence keep the iPhone business growing? they did not get that the only guidance they did get top-line revenue will grow a bit and Services will grow again by double-digit percentage points a little color though on early iPhone 16 demand from Tim Cook I talked to him on these results and he told me the first few days of iPhone 16 sales were better compared to the 15 last year and 15 sales were strong as well Cook pointed out the 15 Pro models still work with Apple intelligence So that in part at least explains the record September quarter for those iPhone revenues Also, it was the opposite of what many analysts thought were happening for those initial sales meantime Apple intelligence just launched on Monday and cook told me in the first few days more people were updating to the new software than They did for the same version a year ago He called it quote a really early stat But he said they're also tracking how many people turn on Apple intelligence after the update wouldn't tell me how many but he still Sounded optimistic about the momentum and we're still waiting for more artificial intelligence features to launch across Apple's platforms Chachi BT is coming in December and more features and new languages coming next year It's unclear still if AI is driving iPhone demand for now The best we have from cook is he says Apple intelligence is a compelling reason to upgrade Carl really quick Steve is the next big catalyst the iOS date in December Yeah, that's the next big one. That's when they finally start putting chachi BT on there. Obviously, that's one everyone's watching for Apple of course considers that the best of those AI chat bots That's why it's gonna be the first out of the gate with that iOS integration Carl Steve appreciate it Important story as we're looking as shares resume there a little bit of a downward trajectory today Steve Kovac

U.S. President Donald Trump is ducking press questions about newly released emails connecting him to convicted sex offender Jeffrey Epstein’s criminal activities ahead of an expected vote on releasing all Epstein case files by the U.S. House of Representatives as early as next week.

Washington

Trump avoids media’s Epstein email questions

The U.S. government lumbered back to life on Thursday (November 13) after the longest shutdown in U.S. history snarled air traffic, cut food assistance to low-income Americans and forced more than 1 million workers to go unpaid for more than a month. But the deep political divisions that caused the 43-day shutdown in the first place remain unresolved.

U.S. government opens up again but deep political divisions remain

China's factory output and retail sales grew at their weakest pace in over a year in October, piling pressure on policymakers to revamp the $19 trillion export-driven economy as mounting supply and demand strains threaten to further curtail growth.

Beijing

China's factory output, retail sales growth worst in over a year

Germany's government plans to bring back military service, to boost troop numbers to deal with the perceived threat from Russia. But voluntary conscription could become compulsory, if not enough recruits come forward.

Berlin

Germany outlines potential shift to compulsory conscription

As F-35 stealth fighter jets fly missions from a reopened naval base in Puerto Rico and Marines practice beach landings, sources tell CBS News the Pentagon is preparing for possible military action in Venezuela. Charlie D'Agata reports.

Pentagon preparing for possible military action in Venezuela

President Trump's name appears hundreds of times in the newly-released batch of 23,000 pages of records and messages from convicted sex offender Jeffrey Epstein, raising questions about their relationship. Mr. Trump has repeatedly denied any wrongdoing and has called the scandal a "hoax" perpetrated by Democrats.

Trump named hundreds of times in newly released Epstein files

A federal judge has ruled that hundreds of people detained by Immigration and Customs Enforcement during "Operation Midway Blitz" in the Chicago area must be released. CBS News immigration and politics reporter Camilo Montoya-Galvez has more.

Chicago

Judge finds ICE illegally arrested hundreds of people in Chicago

For the first time in six weeks, the U.S. government is open. President Trump signed a bill last night to fund the government through the end of January.

Trump says he is 'willing to work with anyone' on health care

U.S. forces have killed four people in the latest strike on an alleged drug boat in the Caribbean. CBS News national security coordinating producer James LaPorta has more.

Caracas

U.S. forces kill four in latest Caribbean drug boat strike

Israeli settlers set fire to a mosque in the West Bank on Thursday (November 13) and sprayed racist slogans on its walls, Palestinian residents said.

Jerusalem

Middle East Conflict

Israeli settlers torch mosque in West Bank, residents say

Thailand-Cambodia border tensions escalate days after a US-backed ceasefire agreement breaks down.

Bangkok

Thailand-Cambodia tensions escalate as truce hangs in the balance

A bipartisan group of lawmakers is one step closer to the full release of the Justice Department's documents on Jeffrey Epstein after securing the final signature needed to force a House vote. Scott MacFarlane reports.

House to vote on Epstein files release after bipartisan group push

With the Amazon nearing a tipping point, Indigenous voices are demanding immediate action at COP30, with campaigners saying their protests are a stark reminder that time is running out to stop catastrophic climate change.

Belém

Indigenous voices demand action at COP30 amid Amazon crisis

The U.S. government's longest standoff left both parties facing heavy criticism, and neither is likely to claim victory. Millions of Americans felt the impact, from hundreds of thousands of unpaid federal workers to families left without food stamps.

Trump signs deal to end record 43-day U.S. shutdown

Venezuela is preparing a 'massive mobilization' of its military as the U.S.’s largest warship arrives in the Caribbean Sea after U.S. President Donald Trump ordered a military buildup in the region.

Venezuela readying military as U.S.’s largest warship arrives

After 43 days, Congress passes a bill to reopen the U.S. government—Trump to sign spending legislation into law.

Washington County

U.S. House votes to re-open government, Trump to sign bill

Linda Sun faces trial – Prosecutors allege she secretly advanced China’s interests while serving in New York government.

New York

Ex-aide to NY governor accused of being China agent

The House passed a funding bill to end the government shutdown on Wednesday night, sending the measure to President Trump's desk for final signature.

House passes bill to fund government and end U.S. shutdown

Canada’s Foreign Minister Anita Anand met with U.S. Secretary of State Marco Rubio during the G7 summit to discuss defense, trade, and global security cooperation amid growing geopolitical tensions.

Kananaskis

Canada meets with U.S. counterpart Rubio at G7 summit

Venezuela has announced a "massive mobilization" of its military forces, as the U.S. continues its military buildup in the Caribbean. The announcement comes in the wake of U.S. strikes that have targeted at least 20 vessels in the waters around Latin America, killing dozens of people.

Venezuela mobilizing military as U.S. builds up military presence

The House of Representatives is preparing to vote on a long-awaited bill to end the government shutdown. CBS News congressional reporter Taurean Small has more from Capitol Hill.

House of Representatives ready vote on ending government shutdown

Warning: Some details are disturbing. An Army OB-GYN in Texas is accused of years of sexual assault and abuse of women on multiple bases, according to a recent lawsuit.

Killeen

Army gynecologist accused of secretly taking videos during exams

U.S. House Democrats on Wednesday released emails from Jeffrey Epstein referencing President Donald Trump, who has denied any knowledge of the convicted sex offender's crimes. In a 2019 email, Epstein said Trump "knew about the girls as he asked Ghislaine to stop."

New emails from Epstein mentioning Trump released by House Democrats

Cleveland Guardians pitcher Luis Ortiz was arraigned on Wednesday and pleaded not guilty to allegations of taking bribes to rig pitches. CBS News' Shanelle Kaul reports.

Brooklyn

Guardians pitcher Luis Ortiz arraigned, pleads not guilty

UK Prime Minister Keir Starmer backed the BBC while urging it to correct errors after U.S. President Donald Trump threatened a $1 billion lawsuit over a misleading edit of his Jan. 6, 2021 speech. The controversy led to the resignations of the BBC director general and head of news.

London

UK PM Keir Starmer backs BBC amid Trump threat

The U.S. House of Representatives will vote Wednesday on a spending bill that passed in the Senate earlier this week and could bring the longest government shutdown to an end.

House to vote on funding bill that could reopen government

The USS Gerald Ford aircraft carrier strike group has moved into the Latin America region, U.S. officials say, dramatically escalating a military buildup that has deepened tensions with Venezuela.

Largest U.S. aircraft carrier sailing to Latin America region

U.S. President Donald Trump sent a letter to Israeli President Isaac Herzog urging him to pardon Prime Minister Benjamin Netanyahu. CBS News' Courtney Kealy has more.

Tel Aviv-Yafo

Trump urges Israel's president to pardon Benjamin Netanyahu

Three astronauts remain stuck in space after their return capsule was damaged by orbital debris—delaying their journey home.

Three Chinese astronauts stranded in space after capsule damage

The former first lady of Gabon and her son were being tried in absentia on various corruption charges.

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Rise of AI