Apple to preview new software as it looks to make up for flagging iPhone sales

Apple will preview upcoming changes to its phone and computer software Monday as it diversifies to offset eroding sales of its bedrock product, the iPhone.

The software showcase is an annual rite. This year, however, Apple is grappling with its biggest challenge since its visionary co-founder, Steve Jobs, died nearly eight years ago.Although it’s still popular, the iPhone is no longer reliably driving Apple’s profits the way it has for the past decade. Sales have fallen sharply for the past two quarters, and could suffer another blow if China’s government targets the iPhone in retaliation for the trade war being waged by President Donald Trump.

Apple is trying to adapt by squeezing money from digital services tailored for the more than 900 million iPhones currently in use. As part of that effort, Apple is supplementing its music streaming service with a video gaming bundle and a Netflix-like video streaming service scheduled to debut this fall.

Apple has already phased out the iTunes from the iPhone and iPad, but now it’s expected to do the same on the Mac and other personal computers. Instead of iTunes, separate apps for music, video and podcasts are expected to be offered for computers, mirroring how Apple already handles those services on mobile devices.

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