Apple shares rose in after-market trading on Thursday after the company forecast higher sales than Wall Street expected, a sign the company expects iPhone sales to recover as it rolls out artificial intelligence features.

Apple stock lifted following guidance for the current quarter after the company reported a drop in ​iPhone and China sales. Overall revenue grew 4%.

Sales of Apple iPhones dropped at the end of last year, as the tech firm's roll out of new artificial intelligence (AI) features was met with a lukewarm response. Chief executive Tim Cook said the new features helped to drive stronger sales in the countries where they were available, such as the US.