Apple stock surged 54.4% in a year as CEO revealed AI features were driving iPhone 16 upgrades in markets where they were available.

On Apple's January 2025 earnings call, the CEO stated that in markets where Apple Intelligence features were live, 'the year-over-year performance on the iPhone 16 family was stronger than those where Apple Intelligence was not available.' Key AI features are locked to newer hardware, creating a direct link between new software and hardware sales.

Before the surge, Apple's trailing twelve-month revenue growth had accelerated to 10.1%, more than double its three-year average of 4.1%, and net margin stood at 27.0%, matching its three-year peak—signals the business was operating at peak efficiency.

An October 2024 executive statement noted that the iOS update containing the first AI features saw adoption that was 'twice as fast' as the previous year's version, indicating strong user demand for the new capabilities.