• by Gavin O'Malley  @mp_gavin, August 25, 2016

Apple is reportedly testing an app that sounds a lot like Snapchat. The app in question lets iPhone users record video, add filters or drawings, and share it with one or more contacts, sources tell Bloomberg News.

The app -- which has no official launch date yet -- comes as Apple’s core businesses are struggling, particularly iPod sales.

As a direct result of sagging iPhone sales, Apple revenue just fell for a second quarter in a row. Year-over-year, it declined 14.6% to $42.36 billion. It also saw profit fall 27% during the fiscal third quarter.

On the bright side, that revenue number was “near the high end of our guidance range,” Apple CEO Tim Cook told analysts on last month's earnings call.

This “reflected stronger customer demand,” Cook said. “We had a very successful global launch of the iPhone SE. Overall, we added millions of first-time smartphone buyers during the quarter.”

Worldwide, revenue from mobile video will reach $25 billion by 2021, per a recent Strategy Analytics report. Top platforms are anxious to turn this bonanza into bucks. Earlier this month, Facebook said it was testing a new format in which 15-second ad videos can be placed into Facebook Live streams.

More broadly, Apple has reason to be optimistic. During the fourth quarter, the tech giant said its active-install base surpassed 1 billion devices for the first time ever.

From iPhones to iPads, Macs to Apple Watches, the number of gadgets syncing with Apple’s services increased by a healthy 25%, year-over-year.

Stateside, Apple's share of smartphone users is expected to account for a 43.5% share in 2016 -- up slightly from 43.3 in 2015, by eMarketer’s estimation.

Android, by comparison, will see its share of U.S. smartphone users rise slightly to 52.0%, up from 51.7% the previous year.

Looking ahead, analysts say Apple's biggest and best hope lies in the success of its next iPhone.