Apple's fiscal 2Q revenue, profit sag amid iPhone slump

SAN FRANCISCO (AP) — Apple's sales are still shrinking amid weakening iPhone demand, despite the company's increasing emphasis on services designed to bring in a steady flow of money from the 1.4 billion of its devices still in use.

Revenue for the January-March quarter fell 5% from the same time in 2017 to $58 billion, the company said in its earnings report Tuesday. That downturn followed a 5% drop in the previous quarter.

It's the first time Apple has suffered two consecutive quarterly revenue declines in two-and-half years.

Apple still posted a profit of $11.6 billion during its latest quarter, though that was down 16% compared to last year. That translated into $2.46 per share, down 10% from last year, but above the $2.36 per share forecast among analysts surveyed by FactSet.

The Cupertino, California, company also announced a 5% increase in its quarterly dividend to 77 cents per share.

That news, plus a company forecast signaling the revenue downturn may be ending in the current April-June quarter, seemed to please investors. Apple's stock gained nearly 5% to $210.50 in after-hours trading.

But even if the shares rise similarly during Wednesday's regular trading session, the stock will remain about 10% below its peak reached nearly seven months ago.

Questions still seem likely loom over the stock. Apple is continuing to grapple with challenges it hasn't had to confront since iPhone debuted 12 years ago, catapulting the company on to a head-spinning trajectory.

Until recently, Apple could count on people eagerly lining up to buy its latest iPhone models at ever loftier prices. That's no longer the case, especially now that Apple is charging $1,000 and higher for its top-of-the line iPhones. Many consumers aren't seeing enough compelling new features to...