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Business

iPhone sales slump but Apple's in Karaoke mode

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Opening sequence

Business

iPhone sales slump but Apple's in Karaoke mode

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COMING UP:iPhone sales slump but Apple's in Karaoke mode

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Transcript

00:00:02
>> What do Apple's earnings have to do with carpool karaoke? With iPhone sales slumping, the latest quarter showing sales drop 15% compared with the same quarter last year, the tech giant is pushing for things like Apple Music in iCloud for growth and excitement. So minutes before its third quarter earnings Tuesday, it popped the news that Apple Music will air first exclusively these viral segments that are a breakout from the Late Late Show with James Corden.
00:00:30
Even Michelle Obama saying along earlier this month.
00:00:33
MUSIC]
00:00:38
Reuters Company News Editor, Peter Henderson in San Francisco.>> Apple is definitely moving itself to focus on services in a way that it hadn't in the past. A lot of the time in the past it'd describe these services as simply ways to make the device more popular, to get people to buy iPhones.
00:00:55
But so many people have bought iPhones now, they need to be making money off of other areas. Such as getting a cut of revenue from what people watch, what people listen to, and other services. Apple is expecting services to grow a lot, but I think a lot of people will be watching short term, even more the launch of the iPhone 7.
00:01:19
And to see whether that is going to bring it back, the iPhone itself, back into growth.>> Apple's services business that covers things like Carpool Karaoke raked in nearly $6 billion in revenue, up about 19% on year, so it's not chump change. Still, once investors are done singing along they might get a spook by Apple's China sales, which dropped 33% on year, a big concern as it's a major growth engine for Apple.