While iPhone sales dropped 1 percent, consumer interest in Apple’s flagship product is expected to pick up later this year.
This spring, Apple updated its iPads and Macs with faster processors and new features. The improvements are already paying off.
On Thursday, the tech giant said sales of iPads and Macs jumped by more than 12 percent during the three months that ended in June, helping the company bounce back after a series of lackluster quarters.
Apple reported that sales rose 5 percent, to $85.78 billion, while profit increased 8 percent, to $21.45 billion. The results exceeded Wall Street analysts’ expectations for $20.65 billion in profit during the quarter. Shares rose 1 percent in after-hours trading.
Demand for iPads and Macs helped offset weak iPhone sales. Interest in iPhones has waned in China, where competition from Huawei has intensified.
In China, sales of Huawei phones have surged over the past year. The Chinese smartphone maker increased its shipments in China by 45 percent during the June quarter, while Apple’s shipments fell 5 percent.
Apple said iPhone sales fell 1 percent, to $39.3 billion in the quarter, its largest decline in a June quarter since 2016. Total sales in China fell 6.5 percent, to $14.73 billion.