Apple’s (AAPL) first quarter 2019 earnings results, by the numbers: Apple said Tuesday that its sales for the all-important holiday quarter hit $84.3 billion. The figure was slightly better than Apple had warned investors to expect earlier this month, but nonetheless represented a 5% decline from the same quarter a year ago.
The sales decline was driven by a dip in iPhone sales, which Apple CEO Tim Cook previously said was primarily due to a slowdown in China. Apple’s iPhone revenue for the quarter fell 15%, to $51.98 billion.
Apple’s sales in China also fell considerably. It reported revenue in the region of $13.17 billion, down from $17.95 billion in the same period a year ago.
Apple stock initially rose as much as 3% in after hours trading Tuesday following the report.
As iPhone sales drop, Apple has no other path than deepening services. It needs to open iOS to other hardware systems to grow the services business since you need volume to win on services.