Weak iPhone demand punishes Apple suppliers

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The iPhone's camera is getting a big update.
Apple isn't the only one suffering due to weak iPhone sales.
Photo: Ste Smith/Cult of Mac

Weak demand for the iPhone is causing earnings to fall for a number of suppliers in Asia, and few of them are hopeful that the situation is going to change.

Foxconn, the biggest assembly partner for the iPhone, saw its profit fall 9.2 percent last quarter, while Pegatron’s nosedived a whopping 35.1 percent.

Apple might pull the plug on iTunes music downloads

Apple might start signing artists to contracts, in order to compete with the likes of Spotify. Photo: iTunes/Apple
Are iTunes Store's days numbered?
Photo: Apple

Update: Apple is denying a report that it plans to stop selling downloads within the next few years. “Not true,” Apple rep Tom Neumayr told Re/code Wednesday afternoon without elaborating.

Apple is planning to give iTunes music downloads the boot in as little as two years, according to sources currently working with the company.

With sales already falling, Apple will instead focus its efforts on persuading fans to stream tracks and albums through Apple Music.

Microsoft more profitable than Apple at $1 trillion milestone

how-microsofts-ambitious-new-lumia-950-phones-compare-to-rivals-image-cultofandroidcomwp-contentuploads201510Lumia-950-XL-gallery-2-jpg-jpg
Lumia's failure hasn't hit Microsoft too hard... yet.
Photo: Microsoft

Apple may have quaffed all the champagne at the $1 trillion in revenue party before Microsoft even got its invite, but the Windows maker rocked up in a bigger limo.

Last quarter, Microsoft finally reached the major milestone that Apple celebrated back in 2015, and it currently boasts even more profit.