Apple is still shrinking

Here’s a good sense of where Apple is right now: Its only two growing businesses are the iPad — where unit shipments fell year over year but revenue grew — and its Services business — mostly iTunes and the App Store.

And expectations are now low enough that a second consecutive quarter of shrinkage — and a third now projected — still sent shares up 5 percent in after-hours trading. (And let’s be realistic: Apple, which generated $8 billion of profit during the quarter, is fine.)

As expected, Apple just reported $42.4 billion in third-quarter revenue. That represents a roughly 15 percent year-over-year decline, as most of the company’s product segments and geographic segments continued to shrink.

iPhone shipments, for example, fell to 40.4 million, China revenue declined 33 percent to $8.8 billion, and the “Other Products” category — which includes the newish Apple Watch and Apple TV — declined 16 percent to $2.2 billion. Japan, meanwhile, was Apple’s only growing region, where sales grew 23 percent.

Apple expects the trend to continue this quarter, despite the expected launch of a new iPhone in September. The company projects its fourth-quarter sales between $45.5 billion and $47.5 billion, compared with $51.5 billion this period last year.

This article originally appeared on Recode.net.