Apple’s $3 trillion valuation might be in jeopardy as the company’s Q3 result has revealed yet another decline in the company’s revenue. This decline is as a result of a slowdown in iPhone sales. According to the company’s Q3 results, iPhone raked in $39.67 billion, down from $40.66 billion in the same quarter last year.

This decline would be the company’s third consecutive quarterly revenue drop, and according to its report, could witness yet another drop in revenue for the fourth consecutive quarter. Following the report, the company’s share price dropped as much as 2.2% in US premarket trading on Friday. Analysts are of the opinion that a continuous downside would soon see Apple lose its valuation as the most valuable company in the world.

However, Apple’s sustained success in services reduced the hardware slowdown as revenue from services grew from $19.6 billion to $21.2 billion, year over year, exceeding analyst estimates.

“We are happy to report that we had an all-time revenue record in Services during the June quarter, driven by over 1 billion paid subscriptions, and we saw continued strength in emerging markets thanks to robust sales of iPhone,” CEO of Apple Inc, Tim Cook said in a release. Tim Cook also said from the education sector to the environment, the company is advancing its principles while championing innovation that improves customers’ lives, to make the world a better place for humans and technology exploration.

As seen in the Q3 report, Apple’s performance over the year was also driven by sales in China which increased by 8% year on year. the California-based company claims to have increased its market share in the world’s largest smartphone market.

Additionally, AI and ML have become fundamental technologies, and they are virtually embedded in every product that the company builds, according to the CEO in an interview with CNBC. Also, on a research basis, the company has been doing research on AI and machine learning, including generative AI, for years.