With iPhone sales sagging, Apple's earnings suffer

SAN FRANCISCO – Apple says iPhone sales fell for the second quarter in a row, putting a damper on revenue and profit for the period ending June 30.

The tech giant sold 40.4 million iPhones in the quarter, down 15 per cent from a year earlier. Profit fell 27 per cent to $7.8 billion, while revenue dropped 15 per cent to $42.4 billion.

Apple also sold fewer iPads, Macs and smartwatches. Overall results were slightly better than forecast by Wall Street analysts, who said consumers just aren’t as excited about the newest iPhone models.

The one bright spot was a 19 per cent revenue jump for the Apple segment that includes iTunes, Apple Music, and the App Store.

Chief Financial Officer Luca Maestri said online services are increasingly important to Apple, since their financial contribution is increasing.