Apple expects iPhone and wearables year-over-year revenue trends to weaken in June quarter

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Apple Inc. expects year-over-year revenue performance for the iPhone and wearables segments to worsen in the June quarter relative to the March quarter, according to Chief Financial Officer Luca Maestri on the company’s Thursday earnings call. Revenue for the iPhone category fell by 6.7% in the March quarter and revenue for the wearables segment increased 22.5%. Apple also anticipates that year-over-year revenue performance will improve in the June quarter for Macs and iPads as more people work and study remotely. Mac revenue dropped 2.9% from a year earlier in the March quarter while iPad revenue fell 10.3%. Maestri said that Apple was seeing “two distinct trends” in services and he expects “very strong recent performance” for the App Store, video, Apple Music, and cloud services to continue through the June period while services like AppleCare may remain pressured. Apple also expects a negative impact of $1.5 billion from foreign exchange in the current quarter. Apple shares were off 2.4% in after-hours trading Thursday after the company’s fiscal second-quarter earnings report. The shares have fallen 9% over the past three months as the Dow Jones Industrial Average has declined 16%.

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