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.

The tech giant’s sales of apps and services helped profit grow 7 percent from a year ago, even as the company contended with slumping sales in China.

Apple shares rose more than 3% in premarket trading on Friday after the company forecast relatively strong sales growth, hinting at a recovery from a dip in iPhone sales as it rolls out artificial intelligence features.