Apple\'s Revenue and Profit Drop: \'The iPhone Has Matured\'

Apple’s Revenue and Profit Drop: ‘The iPhone Has Matured’

Revenue for iPhone declined 15% for the quarter; revenue from other products and services grew 19%

Apple said iPhone revenue dropped 15% in the fiscal first quarter, causing a drop in both revenue and earnings amid a matured smartphone market and a slowdown in its service business. WSJ's Lee Hawkins reports.
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Apple Inc. posted its first holiday-quarter decline in revenue and profit in over a decade and warned the slowdown in its core iPhone business and weakness in China has spilled into this year.

The company’s revenue dropped 4.5% to $84.31 billion for the three months ended Dec. 29, while its profit fell slightly, to $19.97 billion. Apple has been stung at home by smartphone owners’ increasing reluctance to upgrade to pricier devices and by competition in China from lower-priced, feature-rich phones. Its iPhone sales fell 15%...