Apple's earnings continue to grow while iPhone sales take a breather

Apple has released its Q2 2017 earnings, revealing that while the company continues to grow, its iPhone sales have remained relatively stagnant.

Apple’s quarterly results are the surest indicator of where the company is headed, apart from the bluster of its annual WWDC and September events. In recent months, the company faced its first decline in several years – though its Q2 2017 earnings reports illustrate a return to form.
While the company continues to advance on multiple fronts – for example, Apple Watch sales have doubled (despite the troubling news of several popular apps abandoning the platform) and the company’s service divisions, including Apple Music and iCloud, continue to rake in cash. In financial terms, the company’s wearables division is worth $5.1 billion USD alone, while its services are now worth more than $7 billion USD.
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However, rumblings of change can be heard from Cupertino – the company managed to sell 50.76 million iPhones, and while that’s no doubt an impressive figure, it does equate to a decline by 1% when weighted against the company’s previous quarter.
Apple CEO Tim Cook has claimed that this is a result of the rumours surrounding a radical redesign that could cement the iPhone 8 – or iPhone Edition – as a breath of fresh air in its mobile market. The question, in short,  is this: are consumers punishing Apple for – or remaining ambivalent towards – its design choices for the staid iPhone 7 and 7 Plus?
Perhaps an answer can be found in the fact that Apple has yet to develop another product that is a runaway success like the original iPhone and iPad – and considering the iterative nature of its recent handsets and the dying tablet market, it is now up to Apple to develop a product that can reinvigorate interest not only in the international market, but specifically in China.
While sales remain positive in the region, the Cupertino company has now reported a 14% decrease in revenue year-on-year; and with heavyweights such as Huawei and Oppo conquering the country, the firm will have a far harder fight on its hands. For a company that relied on Chinese sales as a driver during 2014 and 2015, the indication is not a good one.
Some solace might be found in India, where the company recently announced that it would begin to manufacture iPhones. Still, the firm has projected between $43.5 and $45.5 billion USD in revenue for the third quarter of 2017 – a lesser sum than the $49.6 billion USD it earned in Q3 of 2015.
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What are your thoughts? Can Apple develop its next iPhone into a knockout success, or is there hope to be found somewhere else? Be sure to let us know your opinion in the comments below!
Follow Bryan Smith on Twitter: @bryansmithSA
Source: Apple Newsroom