The world’s largest technology manufacturer derives more than half of its total revenues from the device launched 12 years ago.
The continued drop in sales of Apple’s flagship iPhone has weighed on its latest earnings, dragging quarterly profits down 10% to $13bn.
iPhone sales fell 12% in the quarter to $25.06bn.
The drop is highly significant for the world’s largest technology manufacturer because it derives more than half of its total revenues from the device – launched 12 years ago.
This comes as customers hold on to their smartphones for longer, and competition from rivals in China offering cheaper, feature-rich handsets eats into Apple’s market share.
China’s slowing economy also hurt Apple, where the tech giant generates around 20% of its revenue.
Sales in Greater China – including Hong Kong and Taiwan – fell 4% to $9.16bn.
Falling iPhone revenues were offset with sales growth in every other area of Apple’s business, including its iPad tablets and Mac computers.
Sales from its closely-watched services business, which includes its App Store, Apple Pay mobile payments and device insurance arms, were up 13% to $11.46bn, but this marked the smallest quarterly rise since 2015.
Revenue for the quarter was up 1% to $53.8bn, just above consensus estimates of flat sales at $53.4bn
Apple said it expects revenue in the current (fourth) quarter to come in at between $61bn and $64bn, above analysts’ expectations.
The company has taken a large bet on digital services as an alternative source of profit from the 900 million iPhones being used today, having launched to great fanfare the likes of the Apple TV+ streaming service, Apple News+ featuring magazines, the Apple Arcade gaming subscription service and an Apple credit card.
Apple shares fell 1% ahead of reporting its results after markets closed, but in after-hours trading was up more than 4.5%
Last week US president Donald Trump said his administration would give no tariff concessions to Apple on parts it imported from China for its Mac Pro desktop computer, as trade war rhetoric against China ramped up.
Last month the Wall Street Journal reported that Apple would shift manufacturing of the computer from China to Texas.