Don't say they didn't warn you. Apple posted a year-over-year decline in revenue today, the first time the company's failed to grow its business in 13 years. It brought in $50.6 billion in revenue for the second quarter of 2016, and $10.5 billion in profits. That compares with $58 billion in revenue and $13.6 billion in profits during this period last year, a drop of 13 percent for the revenue. It is projecting another revenue decline for next quarter, a 15 percent year-over-year drop.

Apple isn't doing badly, it is still one of the most valuable and profitable companies in the world. In India, iPhone sales were up over 50 percent compared with 2015. But it hasn't found a new blockbuster product to pick up the slack as iPhone sales have slowed in many parts of the globe. On today's investor call, CEO Tim Cook nodded to a "pause in growth" and called the quarter a "challenging" one.

The iPad seemed like a promising new device at first, but sales peaked in 2014, and have been in decline ever since. The Apple Watch was the last major category of new hardware the company introduced. It quickly became a billion dollar business, but so far hasn't shown the kind of mainstream appeal that made the iPod, MacBook, and iPhone such massive sellers. The details of Watch sales are still lumped in with "Other Products," and that was the worst performing piece of Apple's business this quarter.

Before becoming CEO, Cook was known for his management of Apple's supply chain. With recent releases like the iPhone SE, which added more powerful hardware to an old iPhone design, the company has had more success optimizing its product line to fit the market than it has creating entirely new must-have categories. But he noted on today's call that Apple has acquired 15 companies over the last few years to power its expansion into new areas where Apple might find growth.

As for pursuing sales in fast growing markets like India, Cook said it was about building out access to faster mobile date and building out the retail channel with local carriers, which right now don't sell a lot of devices directly, as they do in markets like the US. He believes India is where China was seven to ten years ago, leaving open the possibility that Apple could have blockbuster smartphone growth there at some point in the future.

The one bright spot in Apple's earnings was revenue from Services — a category which includes apps, media, and payments — with Apple Music growing to 13 million paying subscribers. Cook stressed several times on the earnings call that Apple would look to its install base of over 1 billion monthly active users to grow its revenue from software and services, helping to ween Apple off its dependence on hardware sales. "We may not have the wind at our backs as we once did," said Cook. "But things are a lot more stable," than most people seem to think.

Walt Mossberg reflects on Apple's history on its 40th anniversary