Apple profits edge higher despite lower iPhone sales

Apple reported modestly higher quarterly profits August 3 despite another dip in revenues, as a record performance in services offset lower iPhone sales. — Photo by Nicholas Kamm/AFP

NEW YORK: Apple reported modestly higher quarterly profits Thursday despite another dip in revenues, as a record performance in services offset lower iPhone sales.

Besides services, executives spotlighted increased sales in China and several key emerging markets that helped to compensate for declines in the United States where iPhone sales have ebbed in a saturated smartphone environment.