Apple’s iPhone sales declined for the first time since 2003. That’s the bad news, and judging from the pundits, the sky has started to fall on Apple’s halcyon days. One analyst goes so far as to say that “the only thing that is plainly clear concerning Apple is that it has saturated the market with its legacy, hardware products and largely achieved its total addressable market.” The truth, however, is very different. What this analyst and others seem to be missing is that the future for Apple’s iPhone business has less to do with hardware and more to do with services.