Apple profit stable as service gains offset iPhone slump

Apple said Tuesday that profits held steady in the most recent quarter, with revenue growth in music, movies, apps and other services offsetting slumping iPhone sales, sparking a rally in shares of the California tech giant. Profit in the final quarter of last year was $20 billion -- a dip of less than one percent -- on revenue of $84.3 billion, even as money from iPhone sales was down 15 per cent from the same period in 2017.

The full extent of the slump in iPhone sales was not clear because Apple for the first time stopped reporting unit sales for its iconic smartphones. Overall revenue for Apple dipped nearly five percent from a year ago, in line with the lowered guidance earlier this month that stunned the market and hammered shares of the iPhone maker.

“While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide,” chief executive Tim Cook said in the earnings release. The update for Apple’s first fiscal quarter to December 29 was greeted with relief on Wall Street, as shares rallied 5.75pc in after-hours trade.