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As iPhone sales slump, Apple bets on services from apps to music

An Apple iphone 6 with Apple Pay is shown in this photo illustration in Encinitas , California June 3, 2015.

Apple Inc's first-ever drop in quarterly iPhone sales has spurred Chief Executive Tim Cook to turn the spotlight on prospects for its services business, but the field is rife with competition and may prove challenging for a brand based on gadgets.

Second-quarter earnings saw services emerge as Apple's second-largest business after the iPhone for the first time, topping iPad and Mac sales, which both fell.

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