What iPhone sales decline? Apple breaks records again

The big story over the last six months in regards to Apple earnings has been that iPhone sales are declining. Well, that ends today.

Apple just posted strong financial results for the first quarter of 2017. In a letter to investors on Tuesday, CEO Tim Cook said: “We’re thrilled to report that our holiday quarter results generated Apple’s highest quarterly revenue ever, and broke multiple records along the way. We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac, and Apple Watch.”

Apple sold 78 million iPhones during the 90-day period. Cook also said revenue from services grew strongly over last year, thanks to record customer activity on the App Store.  It had a services revenue of $7.2 billion, which actually exceeds Facebook’s total revenue of $6.8 billion in the most recently reported quarter.

As for iPhones, last October Apple reported weak fourth-quarter sales. At the time, iPhone sales had dropped 13 percent year over year to 45.5 million units. Some critics questioned Apple’s ability to innovate, while others noted smartphone sales have softened for everyone. 

Still, it was hard not to notice that Apple — after more than a decade of revenue gains — was no longer posting record setting sales not only for iPhone, but also the iPad. Now, however, it seems that the introduction of the iPhone 7 has put an end to that slump (for now, at least).