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BREAKING NEWS: Apple Revenues & Profits Crash

As tipped consumers are turning off buying Apple products with the global Company reporting a quarterly decline in both revenue and profits.

Revenues have fallen 4.5% to $84.31 billion in the three months ended Dec. 29, profit were also hit falling to $19.97 billion, this was helped by a tax rate that declined to 16.5% from 26% a year earlier prior to the 2017 tax overhaul.

Despite the revenue slump, shares in Apple have jumped by as much as 5.48% in after hours trading.

The big iPhone maker also said that projected revenue for the current quarter would fall short. The grim news comes just weeks after it surprisingly slashed its revenue forecast for the December quarter.

The WSJ said that Apple’s difficult month began when it cut its sales guidance for the first time in more than 15 years, projecting revenue would come in at least $5 billion lower than expected. The company has ceded its position as the world’s most valuable company to both Amazon and Microsoft in recent weeks.

Apple expects revenue of $55 billion to $59 billion for the March quarter, below the average consensus estimate of $59.98 billion, according to FactSet. Analysts expect the number of iPhones sold in the March period will decline at the steepest level in the company’s history.

Executives have said they remain confident that growth in its services business, which includes Apple Pay and the App store, will drive future performance.

Revenue from the services business jumped 19% to a record $10.9bn in the quarter, which ended on the 31 December.

“While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide,” said Tim Cook, Apple’s chief executive.

Apple has underperformed this year relative to other technology giants as the same time arch rivals for the crown of biggest tech company including Amazon, Microsoft and Alphabet have risen this year.

Whats becoming clear is that Apple who have become known as the “ripp off” brand now have a pricing problem with consuners reluctant to pay up for flagship iPhones that have risen in price by more than 50% in recent years to over $2,000.

They have also rejected the cheaper iPhone XR, a lower-priced option released in October forcing Apple to slash production.

Sales of the iPhone, which accounts for two-thirds of Apple’s total revenue, fell about 15% to $61.1 billion.

“They’re in a bit of a midlife crisis,” said Steve Milunovich, an analyst at Wolfe Research, an equity research firm. “The iPhone has matured. Patience is required.”

The iPhone woes were particularly pronounced in China where Apple’s total sales fell 27% to $13.17 billion. Local smartphone rivals like Huawei Technologies and Xiaomi are increasingly releasing lower-priced, feature-rich alternatives to the iPhone. Meanwhile, WeChat , an all-in-one app for messaging, payments and more, reduces the difference between Apple’s iOS and Android.

The results also come a day after Apple scrambled to fix a glitch with iPhone’s FaceTime, a video chat application, that allowed users to listen in on the people they were calling when they did not pick up the call.

The company was forced to disable its Group FaceTime feature after it was revealed the bug allowed people to listen to the people they were calling before they answered their phone.

More to follow.

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