Apple's CEO Hints at a Major Business Model Change
iPhone generally represents at least half of Apple (NASDAQ: AAPL) revenue, and the smartphone has been struggling. Even with over a week of sales of Apple's newest iPhones in its most recent quarter, the important segment's revenue was down during the period.
CEO Tim Cook tried to frame that in a positive light during the company's fiscal fourth-quarter earnings call. "iPhone revenue in the September quarter was $33 billion," he said. "This 9% decline over last year is a significant improvement over the 15% decline we saw across the first three quarters."
Still, iPhone revenue was more than half of Apple's Q4 total of $64 billion. The company did post 17% growth in its non-iPhone businesses, with service revenue jumping by 18% and wearables growing by "well over 50%," Cook said during the company's earnings call. That's positive news, but it's overshadowed by the drop in iPhone revenue -- a drop Cook may have a plan to address.
Source Fool.com
