In the near term, that’s not such a big deal. IPhone revenue is still soaring. Apple made $8 billion more dollars selling iPhones than it did a year earlier.
But at some point Apple’s going to have to figure out what will replace the iPhone, or it won’t be able to squeeze any more juice out of the orange. Apple can’t hike prices forever: Will people pay $2,000 for an iPhone? Eventually it won’t be able to add subscription services either — if it can’t sell more iPhones, eventually it will run out of customers to sell content to.
Apple has an iPhone problem. It has tried to disguise it. Now it wants to hide it away. But Apple can’t avoid the problem forever.