IPhone sales may have dropped but Apple's revenue rises

Apple CEO Tim Cook speaks during an Apple event

Apple CEO Tim Cook speaks during an Apple event

Its shares came off record high levels in after-hours trading when it revealed it sold 50.7 million iPhones over the three months to 1 April - down from 51.19 million in the same period a year earlier. However, the company made more money off the iPhones it did sell this quarter over last - $33.25 billion against $32.86 billion, to be precise.

Services revenue grew strongly in the second quarter.

"We are proud to report a strong March quarter, with revenue growth accelerating from the December quarter and continued robust demand for iPhone 7 Plus". While the exact figures are still in the dark, Cook added that the revenue for Apple's wearables - the Apple Watch, Beats headphones, and AirPods in the a year ago was "the size of a Fortune 500 company".

With two of its more mature hardware product categories in decline, Cook called attention to Apple's smartwatches, Beats products and the recently launched AirPods headphones.

Expectations are building ahead of Apple's 10th-anniversary iPhone range this fall, with investors hoping that the launch would help bolster sales.

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The demand for the iPhone 7 Plus was not able to boost sales in the second quarter, though, resulting in the 1 percent decline and the fourth time that iPhone sales have decreased.

The suggestion the tech press should be accountable for slowing sales will also be greeted with raised eyebrows on many editorial desks around the world.

The company expects its third quarter revenue to stand around $43.5B-$45.5B, compared to the consensus for $45.59B. Apple services, which refers to the sale of apps, movies, music, AppleCare and other subscriptions, has been a focus of growth and Apple urged investors to think of the line as a Fortune 100 company. In India, sales have been surging, and in the premium smartphone segment (Rs 30,000 and above), it has been battling Samsung for the top slot. That report knocked as much as a quarter off of Dialog's market value on the day.

Apple announced that in the first quarter of this year sales increased by 5% to $53 billion and net income increased from $10.5 billion to $11.0 billion.

But Apple is still America's most valuable company, and its market cap on Tuesday hit $776.59 billion.

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