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Apple’s wearables and services drive revenue as iPhone sags

Apple offered sceptics some proof on Wednesday that it can thrive in a future already saturated with iPhones by posting strong sales of accessories such as watches and headphones and offering bullish guidance for the holiday season.

The California tech group reported $64bn in revenue for the three months to September 30, up 2 per cent from a year ago, even as smartphone and Mac sales both declined.

That was ahead of the median Wall Street estimate for $62.9bn, driven led by 54 per cent growth in the group’s increasingly prized Wearables division — comprising watches, headphones and other accessories — to $6.5bn.

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