Apple shifting from growth machine to cash cow? – The Wall Street Journal

DUBLIN — Here on Biznews, we've been discussing Apple's falling iPhone sales for the better part of a year. While the company has plenty of opportunity in services, it seems clear that it has reached the limits of the market for its premium-priced electronics. As smartphones become commodity products, Apple will be hard-pressed to maintain its margins and sales, let along grow them (especially as much of the growth available is in markets like India, where cheap is king). In response, Apple has been looking at new products like wearables and at expanded services. Products like the Apple Watch and services like Apple Music don't yet contribute much to Apple's bottom line, but they may grow into nice businesses. The question is, are we seeing Apple transition from a high-growth machine into a cash cow? The company has a huge cash pile and, apparently, few investment opportunities – it has been sitting on its cash for years. It's now starting to raise its dividend, giving cash back to shareholders. This may be a sign that the high-growth phase is over, and shareholders will now find themselves owning and milking a cash cow. – Felicity Duncan

Apple's iPhone revenue drops 17%

By Tripp Mickle

(The Wall Street Journal) Apple Inc. posted its first back-to-back drop in quarterly sales and profit in more than two years, but the tech titan reported strength beyond its struggling iPhone business and said a sharp downturn in China showed signs of easing.

___STEADY_PAYWALL___