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 outlined a 20-point plan for peace in Gaza as he stood with Israeli Prime Minister Benjamin Netanyahu at the White House. Hamas has yet to comment on the plan.

Washington

Middle East Conflict

Trump, Netanyahu announce plan to end Gaza conflict

Amid growing impatience over the Kremlin’s reluctance to participate in direct talks with Ukraine, Washington is now considering providing Kyiv with Tomahawk missiles, according to U.S. Vice President JD Vance.

Ukraine Invasion

Washington might send Tomahawk missiles to Ukraine, Vance says

The FBI says it is investigating 'an act of targeted violence' after a man crashed his vehicle through the front doors of a Michigan church, opened fire with an assault rifle and set the church ablaze, killing at least four people and wounding at least eight others.

Grand Blanc

Investigators look for motive in deadly Michigan church shooting

Washington is preparing for the arrival of Israeli PM Benjamin Netanyahu, who is set to meet with President Donald Trump at the White House on Monday. President Trump is advancing a plan aimed at securing the release of hostages, ending the war in Gaza, and outlining a post-war strategy.

Netanyahu set to meet Trump at the White House

The military wing of Hamas said it had lost contact with two Israeli hostages held in Gaza City, and called on Israel to pull troops back and suspend air strikes for 24 hours so fighters could retrieve the captives.

Tel Aviv-Yafo

Hamas says it lost contact with two hostages in Gaza City siege

Iran's parliament on Sunday (September 28) condemned what it called "illegal" sanctions, after the United Nations reimposed restrictions over the country's nuclear program at the weekend.

Tehran

Iran parliament slams reimposed UN sanctions as 'illegal'

Ukraine’s President Volodymyr Zelenskyy slammed Russia for the new wave of attacks, which killed at least four in Kyiv, including a child, and accused them of deliberately targeting civilian positions to incite fear and terror. At least 70 others were injured.

Kyiv

At least four killed as Russia launches major offensive on Kyiv

At least 36 people were killed and more than 50 injured on Saturday (September 27) in a stampede at a rally held by Tamil actor Vijay, who is campaigning for election, the chief minister of Tamil Nadu said.

Tamil Nadu

Dozens killed in political rally stampede in India

Hezbollah has commemorated one year since the death of its leader, Hassan Nasrallah, who was killed by Israel during their conflict. At a gathering in Beirut, the group's secretary-general Naim Qassem reaffirmed Hezbollah's refusal to disarm, despite ongoing Israeli attacks and a ceasefire agreement.

Beirut

Lebanon's Hezbollah refuses to disarm

Colombian President Gustavo Petro brushed off reports that his U.S. visa had been revoked, saying, “I don’t care.” The leader was filmed outside United Nations headquarters in New York, where he joined thousands of pro-Palestinian protesters during the General Assembly.

Manhattan

‘I don’t care’: Colombia’s Petro dismisses U.S. visa revocation

Surveillance video obtained by CBS News showed the moments a gunman shot at detainees and agents who were in a van at a Dallas ICE facility on Wednesday. One of the victim's pregnant wife also speaks out.

Dallas

Video shows gunman shooting at detainees, ICE agents

The Trump administration will ask the Supreme Court to decide the constitutionality of the president's executive order on the 14th Amendment, which seeks to curtail birthright citizenship, according to reports. Willie James Inman has the latest.

Supreme Court to decide on birthright citizenship

Powerful monsoon rains in the Southwest are blamed for several deaths in Arizona. The fast-rising water caused flash flooding and chaos. Meteorologist Andrew Kozak has the latest.

Globe

Deadly flooding in Arizona as intense weather sweeps across U.S

Dozens of people have been killed in Gaza on Saturday, as Israel's assault on Gaza City intensifies. In New York this week, Israeli Prime Minister Benjamin Netanyahu spoke about prominent U.S. allies formally recognizing a Palestinian state.

Dozens killed in Gaza as Israel's assault intensifies

At least 36 people were killed and more than 50 injured in a stampede at a rally held by Tamil actor Vijay, who is campaigning for election, the chief minister of Tamil Nadu said.

Karur

According to the Zaporizhzhia Regional Military Administration, a store, ten retail outlets, two apartment buildings, and several non-residential premises were damaged.

Zaporizhzhia

Ukraine goes dark as Russian drone attacks damage facilities

A day after Israeli Prime Minister Benjamin Netanyahu held a fiery speech at the UN General Assembly, at least 44 people have been killed in attacks across Gaza. Ongoing Israeli military operations in Gaza City are forcing more Palestinians to flee.

Trump talks of Israel-Gaza deal as IDF strikes refugee camp

U.S President Donald Trump has signed an executive order outlining the terms of a deal to sell TikTok’s American operation to a group of stateside investors. CBC’s Ashley Fraser breaks down the deal and what it could mean for the social media platform's algorithm.

Toronto

Global Tariffs

Breaking down Trump’s TikTok deal

UN sanctions on Iran that were lifted as part of the 2015 nuclear deal are set to come back in force, essentially killing the landmark agreement. The inability to find a common ground – on all sides - is raising fears of further confrontation.

Sanctions against Iran set to resume after UN vote

Israeli Prime Minister Benjamin Netanyahu addressed the UN General Assembly in New York City on Friday. The leader made defiant statements about the countries that recently recognized the Palestinian state, while U.N. delegates walked out.

New York

Netanyahu makes bold address as U.N. amid delegate walkouts, protests

UN sanctions are set to be reimposed on Iran on Saturday - after a failed bid by Russia and China to delay them. Only four countries voted in favour of the draft resolution.

UN set to reimpose sanctions on Iran on Saturday

Democrats on the House Oversight Committee released more files turned over by the estate of convicted sex offender Jeffrey Epstein.

Washington County

House Democrats release more Epstein files

Israeli Prime Minister Benjamin Netanyahu wore a QR code at the U.N. General Assembly linking to images of Hamas' Oct. 7 attack as Western nations move to recognize Palestine. Dozens of delegates walked out in protest.

Dozens of delegates walk out as Netanyahu speaks at U.N.

A court on Thursday (September 25) sentenced former French president Nicolas Sarkozy to five years in prison over a scheme for late Libyan dictator Muammar Gaddafi to fund his 2007 presidential run.

Paris

Former French president Sarkozy sentenced to five years in prison

The U.S. Justice Department filed criminal charges against former FBI Director James Comey on Thursday (September 25), in a dramatic escalation of President Donald Trump's retribution campaign against his political enemies.

Former FBI chief James Comey charged

U.S. President Donald Trump announced on Thursday new tariffs set to take effect next Wednesday, including a 100% tariff on pharmaceutical drugs. There will also be tariffs on a broad range of imported goods, such as kitchen cabinets, some furniture and trucks.

U.S. to impose new tariffs on pharmaceuticals, some furniture, trucks

US President Donald Trump has hosted his Turkish counterpart Recep Tayyip Erdogan at the White House. The two leaders discussed Türkiye's long-disputed F-35 fighter jets, trade and energy ties as well as regional matters.

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Rise of AI