Smartphone Sales Are Peaking. Here's Why Apple Doesn't Really Care
It's difficult to say if last quarter's iPhone revenue reflects a supply problem or a demand problem; it could be a little of both. Either way, it's cause for concern. Not only did Apple (NASDAQ: AAPL) report lower year-over-year iPhone sales, but total iPhone revenue of $65.8 billion also fell short of analysts' expectations of $68.3 billion. That shortfall prompted a rare companywide earnings miss.
It's not necessarily the end of the world, though. Apple has been preparing for "peak iPhone" for some time now. If that's where we are -- and it very well could be -- then the company already has a powerful profit engine humming.
If you're reading this, you likely know how important the iPhone is to Apple. Even with last quarter's relatively weak showing, iPhone sales alone accounted for 56% of the company's total top line.
Source Fool.com
