Continued declines in the iPhone business do not indicate Apple is primed to freefall toward operating losses, or relinquish its hold on the premium segment, the most coveted segment in the devices market. Even with its iPhone product mix shifting to include a greater number of lower-end devices such as the iPhone SE — iPhone ASP fell 9.8% year-to-year to $595 in 2Q16 as the $400 SE proved popular with consumers in its first full quarter of availability — Apple's profits and margins are the gold standard among device companies. Apple's calculated operating expense spend and strict supply chain management help limit the impact of revenue declines on its margins and profits even as iPhone unit shipments will fall year-to-year into 1H17