(Reuters) – Apple Inc (AAPL.O) iPhone sales dropped to less than half of quarterly revenue for the first time in seven years, but CEO Tim Cook on Tuesday described the change as successfully diversifying away from a single product and forecast results above Wall Street targets.
Cook told Reuters that “marked improvement in greater China” drove fiscal third-quarter results that topped expectations, despite trade tension, and shares rose 4.25% after hours.
“We actually grew in mainland China,” Cook told Reuters. “Non-iPhone revenue grew 17%. We grew in every category outside of iPhone.”
iPhone sales fell 12% to $25.99 billion after dropping 17% in the previous quarter.
Graphic: iPhone fade – tmsnrt.rs/2yAEoCh
Moribund global mobile phone sales have led Apple to focus growth on music, apps, gaming, video and a soon-to-come credit card. Cook said the company had succeeded in growing the number of device users to increase the market for services and accessories.
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