Apple reported fiscal first-quarter earnings Thursday. Analysts are focused on iPhone momentum following a sluggish start to the year for Apple's stock.

Apple on Thursday disclosed its iPhone sales dipped slightly during the holiday-season quarter, signaling a sluggish start to the trendsetting company’s effort to catch up to the rest of Big Tech in the race to bring artificial intelligence to the masses.

Tim Cook insists Apple Intelligence is convincing people to upgrade — even if the features are underwhelming so far.

CEO Tim Cook told CNBC that the iPhone performed better in countries where Apple Intelligence was available, like the US—seemingly suggesting that the slip was partially because Chinese consumers do not see enough reason to buy new phones without Apple Intelligence.