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Apple’s iPhone Is Alive and Well—and It’s Bolstered by Services

By
Don Reisinger
Don Reisinger
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By
Don Reisinger
Don Reisinger
Down Arrow Button Icon
May 5, 2018, 9:00 AM ET

Leading up to Apple’s quarterly earnings report this week, all the talk was focused on the company’s ailing iPhone division and its apparent woes.

But the company ended up proving the critics wrong. IPhone shipments and revenue were up year over year, topping the Street’s estimates. Better yet, the Services division grew rapidly, adding even more cash to the company’s already huge hoard.

This is Fortune’s latest weekly roundup of the biggest Apple news. Here’s last week’s roundup.

But it wasn’t all good news for Apple this week. The tech giant was sued over the dual camera array in its latest iPhones and unhappy customers have started a petition over what they allege a poorly designed keyboard in Apple’s MacBook Pro.

Needless to say, it was an eventful week for Apple. And we’ll recap it in the news roundup below:

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  1. Apple posted better-than-expected earnings this week for the quarter ending March 31. Apple’s revenue jumped 16% to $61.1 billion and profits topped $13.8 billion. Better yet, Apple forecast revenue of $51.5 billion to $53.5 billion for the current quarter versus expected guidance of $51.5 billion.
  2. Apple’s Services business, which includes the App Store, Apple Pay, and Apple Music, was a clear standout during the last quarter. Revenue soared 31% to $9.2 billion, making it the second-largest Apple division behind the iPhone. More importantly, it’s Apple’s most profitable division and added billions of dollars to its bottom line.
  3. Apple may stop bundling a headphone jack adapter with new iPhones this year, according to a new report. Apple’s iPhones don’t have headphone jacks, but they instead ship with adapters that let users plug in headphones through the handset’s Lightning charging port. In a move to get customers thinking about wireless headphones, Apple could ditch the adapter altogether, forcing wired headphone owners to buy an adapter separately.
  4. Camera technology maker Corephotonics this week sued Apple for allegedly violating its patent related to dual cameras in smartphones. The patent centers on the assembly that keeps the dual camera in place. Corephotonics argues Apple violated its patents in its iPhone 8 Plus and iPhone X. Last year, Corephotonics sued Apple for alleged patent violating in its iPhone 7 Plus.
  5. Apple Watch saved a man’s life last month. The man suffered a ruptured ulcer, causing extensive bleeding. His Apple Watch, which monitors heart rate, told him to immediately seek medical attention. He rushed to the hospital, where his life was saved. He had lost 80% of his blood during the ordeal.
  6. Angry MacBook Pro owners this week started a petition for Apple to recall MacBook Pros that it’s shipped since late-2016. They allege that the new keyboard design in the MacBook Pro, called a butterfly keyboard, malfunctions and is sometimes rendered inoperable with keys that don’t move. As of this writing, the petition had secured nearly 6,000 signatures.

One more thing…Apple’s virtual personal assistant Siri was discovered to have a potty mouth this week when users asked it to define the word “mother.” Its first definition was fine, but when it read the second definition, the response was explicit, to say the least. Apple quickly fixed the problem.

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By Don Reisinger
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