Apple opens new chapter amid weakening iPhone demand
SAN FRANCISCO (AP) — Apple hoped to offset slowing demand for iPhones by raising the prices of its most important product, but that strategy seems to have backfired after sales sagged during the holiday shopping season.
Results released Tuesday revealed the magnitude of the iPhone slump — a 15 percent drop in revenue from the previous year. That decline in Apple's most profitable product caused Apple's total earnings for the October-December quarter to dip slightly to $20 billion.
Now, CEO Tim Cook is grappling with his toughest challenge since replacing co-founder Steve Jobs 7 ½ years ago. Even as he tries to boost iPhone sales, Cook also must prove that Apple can still thrive even if demand doesn't rebound.