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Apple Q2 Earnings: iPhone slumps again, but it doesn’t seem to matter

Apple has announced revenue from iPhone sales has dropped year-on-year once again, but strong services performance is pulling the company back towards a trillion dollar valuation.

The company made $31.05 billion from iPhones alone during the last three months, compared with the $37.56 billion it pulled down from the handset during the same period last year. That’s a 17% drop off.

However, the company still racked up $58.01 billion in revenue overall (down around $3 billion from Q2 last year), with growth in the iPad and Services divisions bringing things back up. The Wearables, Home and Accessories devision also benefited from strong performance with $5.13 billion in sales, up from $3.94bn last year.

Related: Is Apple News Plus worth it?

However, it’s those Services bringing in an all-time high of $11.5 billion helping Apple overcome the slowing demand for iPhone upgrades, as the yearly improvements become less essential and the hardware prices increase.

Apple Music subscriptions have contributed significantly to that, while the App Store continues to go from strength to strength. It’ll be interesting to see how new options like Arcade, News Plus and TV Plus affect that number as the year progresses, but Apple’s amended business model seems to be paying off thus far.

“We delivered our strongest iPad growth in six years, and we are as excited as ever about our pipeline of innovative hardware, software and services,” CEO Tim Cook said in a press release. “We’re looking forward to sharing more with developers and customers at Apple’s 30th annual Worldwide Developers Conference in June.”

Everything Apple revealed today fell within the figures expected by Wall Street and, as a result, shares spiked by 4% in extended trending, pushing the company back towards the $1 trillion valuation it briefly enjoyed last year.

Is Apple’s journey to a services first company underway? Or will the next big iPhone innovation put the iconic device back on top? Let us know @TrustedReviews on Twitter.

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