Apple's iPhone sales fell 17% in the first three months of the year, as the company's flagship product continued to struggle.
The technology company reported revenue of $ 31.05 billion in iPhone revenue for the quarter, most of $ 58 bn in revenue Apple came in during the three months.
The news was less gloomy than expected, and Apple's shares spiked 5% in the after-trade when Apple announced it was buying back another $ 75 billion of its shares.
The company made a profit of $ 1[ads1]1.6 billion – ahead of expectations. But this quarter marked a quarterly decline in profits and revenues as the company struggled to move beyond the iPhone.
In January, Apple reported its first decline in revenues and profits over decades as declining sales of iPhones and a financial downturn in China took its toll.
These results came after CEO Tim Cook shocked investors by issuing Apple's first earnings announcement since 2002, referring to "the size of economic deceleration, especially in larger China."
The company has stopped reporting unit sales of iPhones sales – leaving analysts seeking other sources of data for their estimates. Most don't expect a recovery in sales until next-generation phones, using the super-fast 5G network, are launched, are likely to be in 2020.
Meanwhile, Apple repeats itself as a service company and software company as well as the manufacturer of hardware.
"Investors move slowly away from the iPhone cycle and value the company more based on the ecosystem of hardware, software and services, but it will take several years for this to become consensus," Gene Munster, Loup Ventures CEO , wrote in a blog post this week.
Apple's service segment, which includes products like Apple Pay, Apple Care and Apple Music, posted a record $ 11.5 billion after reporting a record $ 10.9 billion in the last quarter.
Last month, Apple presented a number of new subscription services, Apple TV +, to a star-watched event followed by Oprah Winfrey, Steven Spielberg, Reese Witherspoon and Big Bird. It has also announced Apple Card, a credit card supported by Goldman Sachs and MasterCard.
"Our quarterly results show the continued strength of our installed base of over 1.4 billion active units, when we set up a full-time service and the strong driving force for our wearables, home and accessories category, which set a new March quarter record, says Tim Cook, Apple's chief executive.
Yoram Wurmser, analyst for eMarketer, said: "Long-term growth in services and, to a lesser extent, other devices depend on having as many users as possible in the Apple ecosystem, and it's acting still primarily about the iPhone. So it's worrying that iPhone sales fell 17% year on year. Furthermore, sales in China fell by 22%, so the problems in that market remain. Services are up 16% and portable, home and accessories grew by 30%, but the company's long-term growth still depends directly and indirectly on iPhone sales. "