Amid iPhone decline, will a music service rescue Apple once again?
The last time Apple suffered a year-on-year fall in profits was 13 years ago, in the second fiscal quarter of 2003. The following quarter, it launched the iTunes store, which turned the iPod into a sensation and paved the way for the device/services model of the iPhone, which has dominated the smartphone era since 2007. As that era faces its close, with the handset’s first ever year-on-year shipments decline driving Apple’s whole quarter down, there are signs of history repeating itself. While every major hardware product Apple makes saw falling shipments, there was strong growth in Apple Music.
The services segment in Apple’s business reported revenues of $5.99bn in fiscal Q