The iPhone era is over. But how big is the hit to Apple?
The company is expected to report declines in revenue and profit following the closing bell on Tuesday. Analysts expect revenue in the three months ended March to fall 6% to $57.4 billion, while net income is forecast to decline by 20%.
Apple’s (AAPL) biggest problem is the iPhone, which has fallen from grace since customers started balking at expensive upgrades and buying cheaper phones from Chinese competitors like Huawei and Xiaomi.
Investors are hoping that CEO Tim Cook can find another way to boost growth. Services such as Apple Pay, Apple Care and Apple Music could be the company’s next big focus.
2. Tech weakness: Google (GOOGL) and Samsung (SSNLF) both disappointed investors with their quarterly earnings.
Samsung said Tuesday that its operating profit plunged 60% in the quarter to 6.2 trillion won ($5.3 billion). Sales for the three months ended March dropped 14% to 52.4 trillion won ($45 billion).
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