Apple Inc. countered another quarter of weak iPhone sales with strong revenue growth from its supporting businesses, the latest in a series of positive results from Silicon Valley’s tech titans, according to The Wall Street Journal.
Revenue rose 1% to $53.81 billion for the three months ended June 29, Apple said Tuesday, an improvement from back-to-back revenue declines in the previous quarters. Profit slid for the third straight quarter, dropping 13% to $10.04 billion, though per-share earnings of $2.18 exceeded analysts’ expectations.
Apple offset a 12% decline in iPhone sales during the period with revenue growth in every other area of its business, including iPad and Mac. Sales from services—a closely watched business that includes App Store sales, mobile payments and device insurance—rose 13% to $11.46 billion in the period, the smallest quarterly increase since 2015.
“We’re thrilled to report a return to growth,” Apple Chief Executive Tim Cook said on an earnings call.
The iPhone business, which posted sales of $25.99 billion, continued to weigh on results as customers hold on to smartphones longer and competition increases from rivals in China offering lower-price, feature-rich handsets. It was the first time since 2013 iPhones didn’t account for the majority of Apple’s revenue in a quarter, according to eMarketer.
Apple said it expects revenue in the current quarter of between $61 billion and $64 billion, above consensus expectations. It returned $21 billion to shareholders during the quarter, including $17 billion in share repurchases.
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