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

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Two Quebec law firms seeking class action lawsuit against Apple
FILE - In this Sept. 15, 2017, file photo, the camera, upper left, of an iPhone 8 Plus is displayed in New York. Apple has been known to announce its new iPhone installments at the company’s annual keynote in September. Usually, the unveiling is followed by a drop in prices on the current phones in anticipation of the new models making September a good month to shop for iPhones. (AP Photo/Mark Lennihan, File)

Apple’s sales are still shrinking amid weakening iPhone demand, despite the company’s effort to emphasize 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, coupled with results that weren’t quite as bad as analysts had feared, seemed to please investors.

Apple has started the assembling of iPhone 7 at its supplier Wistron’s facility in Bengaluru. (Photo Credit: Apple)c

Apple’s stock gained more than 5% to $211.50 in after-hours trading, following a company forecast that signalled the revenue slump may be ending in the current April-June quarter.