An anonymous reader quotes a report from The New York Times: Apple has long performed like clockwork, growing steadily and producing an ever-growing stream of profit. Not anymore. On Tuesday, the Silicon Valley behemoth said that its net income had fallen 13 percent and that its revenue rose 1 percent in the latest quarter, with iPhone sales continuing to decline and gains in the company’s services and wearables business failing to make up the difference. The results showed persistent signs of weakness for one of the world’s financial standouts. Apple built its enormous business on the iPhone, but sales of the device have slipped for three straight quarters in a saturated market for smartphones. Yet the results also suggested that the company could be starting to halt declines in those sales and other key areas, including revenue from the Chinese market. Over the previous two quarters, Apple’s profits and revenue had fallen over all.

Apple said net income had dropped to $10.04 billion for its fiscal third quarter, from $11.5 billion a year earlier, with profit of $2.18 a share exceeding Wall Street estimates. Revenue rose to $53.8 billion from $53.3 billion a year earlier. In the latest quarter, revenue from iPhone sales fell nearly 12 percent, to $25.97 billion, from a year earlier. In the company’s previous quarter, iPhone sales fell 17 percent. For the first time since 2013, iPhone sales did not account for at least half of Apple’s revenue, said Yoram Wurmser, an analyst at the market-research firm eMarketer. Sales in China have declined nearly 25 percent over the previous two quarters, the report adds. “In the latest quarter, Apple’s sales in the region fell 4.1 percent, while revenue specifically in mainland China grew.”

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Source: Slashdot – Apple Reports Declining Profits and Stagnant Growth, Again