Apple iPhone sales shrink, but forecast raised on credit card and streaming video plans

Apple's pending credit card, the Apple Card, which will initially be US-only. Photo / Supplied.

Apple shares rose 4 per cent in after-hours trading after the tech giant reported shrinking iPhone sales for its third quarter, ending June, but record services revenue and upbeat guidance for the rest of the year - which analysts saw as reflecting confidence in its new video streaming and gaming services, plus its planned launch of a credit card (which will initially be US-only).

Net profit fell 7 per cent against the year-ago quarter to US$10.05 billion.

Revenue rose 1 per cent to US$53.8b.

Apple did not give a per-unit figures for product sales.

But it did say sales of iPhones accounted for just under US$26b of total revenue for the quarter, versus US$29.5b for the year-ago quarter.

That share of revenues — 48 per cent — was the lowest since 2012 for the flagship smartphone.

But Apple's services business grew nearly 13 per cent to $11.5b.

And wearables including Apple Watch grew 48 per cent to $5.5b.

Apple's announcement today came on the back of several recent major developments, including the departure of its longtime design head Sir Jony Ive, an original programming push for the coming Apple TV+, its purchase of Intel's 5G modem business (seen as a precursor to 5G support in future iPhones) and the Apple Card credit card.

Apple says its credit card will be made of titanium, feature no numbers on the front or back (for security and sleek design), charge no fees and calculate in real-time the interest you're in line to be charged, to help you decide how much to pay on your balance.

The tech giant will use Mastercard's global payment network for Apple Card as well as tying it to its existing online Apple Pay system.

Earlier this month, Apple made a request to the US government to exclude components for its upcoming Mac Pro from the ongoing trade war with China, but it was denied by President Trump on Friday.

Apple claims that the current tariffs against goods imported from China will "result in a reduction of Apple's US economic contribution" and "tilt the playing field in favor of our global competitors." The company has warned that some of its products could increase in price due to the situation.

In June, Trump was riled by reports that Apple was moving Mac Pro assembly from the US to China.