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Soft China sales sour Apple's sweet global growth

Chinese powerhouses hold lead in smartphones, digital services

Apple is falling further behind Chinese makers in smartphones and digital services.

GUANGZHOU/PALO ALTO, U.S. -- Apple's slumping sales in China leave a dark spot on the American computer giant's otherwise bright April-June earnings, prompting a host of efforts to close the growing gap with native companies in the hardware and services fields.

The company's revenue for the quarter climbed 7% above the year-earlier level. Sales of the iPad tablet line rose 15% to 11.42 million units following a recent slump, while sales of the iPhone family edged up 2% to 41.02 million units, even as Apple prepares to release new versions of its flagship smartphone this fall. Profit increased for the second quarter in a row, and income on services including app sales grew a healthy 22% on the year to an all-time quarterly record of $7.3 billion.

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