The interesting dynamic around Apple’s latest quarterly financials last night was the relatively relaxed response from Wall Street to the news that the company’s revenues – and sales of its three key device lines – had fallen.

Apple reported fiscal third-quarter revenues (calendar Q2) of $42.4bn, down 15% year-on-year. That included iPhone sales falling from 47.5m units a year ago to 40.4m last quarter, with iPad sales dropping from 10.9m to 10m and Mac sales from 4.8m to 4.3m in the same period. Meanwhile, Apple’s net profit was down 27% to $7.8bn. So why didn’t the company’s stock get hammered? Mainly because all these results were slightly better than analysts had predicted. “We had a June quarter that was better than we had expected 90 days ago,” as CFO Luca Maestri put it. As for music, it wasn’t mentioned much in Apple’s earnings call, although CEO Tim Cook did refer to a 37% rise in App Store revenue “in addition to strong increases in Music, iCloud, and AppleCare”. He added that Apple expects its services business “to be the size of a Fortune 100 company next year”.

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