iPhone Sales Continues to Drop, Apple Earning Billions Still

iPhone might be losing its spark. After the introduction of iPhone 6 a couple of years ago, Apple finds it hard to continue the momentum of making their units a better seller year after year.

It seems like the iPhone 7 suffered the same fate as it struggled to reignite the interest of consumers, despite its improved camera function and water resistant feature. The iPhone 7, which was launch two months ago, looks awfully lot like the iPhone 6.

Overall, Apple was able to sell 45.5 million this quarter, which is 5 percent lesser compared to the units they sold during the same quarter last year. If there's good news, though, that is that they were able to surpass Wall Street's forecast of selling just 44.2 million iPhones.

Their sales have gone down in the last two-quarters, and it is expected to drop until the third quarter continuously. This will become their third straight quarter of decreasing revenues. This also means that this will be the first fiscal year wherein Apple won't experience growth in their annual income, which will become their first since the year 2001. To note, it was the year 2001 when Apple launched their first iPod. Analysts estimate that Apple earnings are down to $1.65 per share.

Apple has high hope still, as the company wants to benefit from the bad rap that Samsung is getting nowadays because of the explosion issues of their units. Furthermore, the company's services business, which includes the Apple Music and the iTune Store, offer hope. Their service revenues are growing year after year, with $6.3 billion in services revenue this quarter alone. This means a 23.5 percent increase in a span of one year. Also, Apple is still leading the race in the smart watch market with products like Apple Watch, although their competitors are not very far behind.