The company reported sharp growth in its services business on Tuesday and Chief Executive Tim Cook said trade tensions between the United States and China were easing, helping boost the company’s shares after hours even though iPhone sales dipped in the holiday shopping quarter for the first time.
Apple said sales for the current quarter would most likely be lower than Wall Street expected, a signal that it continues to face weak demand for the iPhone, especially in China, the world’s biggest smartphone market.
Apple’s iPhone revenue declined 15 percent year-over-year to $51.9 billion. Apple reported revenue of $84.3 billion, slightly above analysts’ average estimate of $84 billion. Earnings per share were $4.18, compared with Wall Street’s average estimate of $4.17. Separately, the company plans to cut the price of some of its flagship iPhones for only the second time in the device’s 12-year history, pegging its retail value to past prices in local currencies outside the United States instead of the rising U.S. dollar.
This event can result in a mood changing market event
