California. Apple on Thursday disclosed its steepest quarterly decline in iPhone sales since the pandemic’s outset, deepening a slump that’s increasing the pressure on the trendsetting company to spruce up its products with more artificial intelligence.

Apple is widely expected to unveil more AI services in June during an annual conference showcasing the next version of its software for the iPhone and Mac computers.

“We believe in the transformative power and promise of AI and we believe we have advantages that will differentiate us in this new era,” Apple CEO Tim Cook assured analysts during a Thursday conference while promising more details will be announced soon.

The 10 percent drop in year-over-year iPhone sales for the January-March period is the latest sign of weakness in a product that generates most of Apple’s revenue. It marked the biggest drop in iPhone sales since July-September period in 2020, when production bottlenecks caused by factory closures during the pandemic resulted in a delayed release of that year’s model.

The current iPhone downturn was the main reason Apple’s revenue for the latest quarter decreased 4 percent from last year to $90.8 billion. It marked the fifth consecutive quarter that Apple’s revenue dipped from the previous year. Apple’s profit in the past quarter totaled $23.64 billion, or $1.53 per share, a 2 percent dip from last year.

But both Apple’s revenue and earnings per share came in slightly above analysts' projections, according to FactSet Research. Apple also predicted its revenue for the April-June quarter will rise modestly from a year ago, which would end the recent streak of erosion.

Part of the iPhone deterioration during the first three months of the year stemmed from a big boost in sales during the same period last year when Apple said it was filling pent-up demand caused by pandemic-driven shipment delays.

Even as it stumbles slightly, Apple remains one of the world’s most prosperous companies. The Cupertino, California, company hammered home that point by announcing a 4 percent increase in its quarterly dividend to 25 cents per share. The company also committed to spending $110 billion buying back its own stock, a move that investors cheered but may fuel criticism that Apple is spending more money catering to Wall Street than creating more innovative products.

Bolstered by the increased dividend and stock repurchase commitment, Apple’s shares rose nearly 7 percent in extended trading after the news came out. The stock price has fallen 10 percent so far this year, erasing about $300 billion in stockholder wealth.

On April 17, Indonesia's President Joko "Jokowi" Widodo met with Cook at the State Palace in Jakarta. During the meeting, Cook informed Jokowi about Apple's recent inauguration of a developer academy in Bali. Additionally, President Jokowi encouraged Cook to consider establishing a manufacturing facility in Indonesia, as Apple is also exploring Vietnam as a potential manufacturing hub for Southeast Asia.