Luca Maestri, Apple's chief financial officer, said Apple's App Store "was a major driver of this performance, and according to App Annie's latest report it continues to be by a wide margin the prefered destination for customer purchases, generating almost twice the revenue of Google Play".
Earnings per share for the iPhone maker hit $1.67 in its third quarter, higher than expectations for earnings of $1.57. Analysts expected Apple to earn $1.57 a share on sales of $44.89 billion in the fiscal third quarter.
Apple sold 41.0 million iPhones in the June quarter, up 1.6% from a year ago and ahead of the 40 million that investors expected.
"With revenue up 7 percent year-over-year, we're happy to report our third consecutive quarter of accelerating growth and an all-time quarterly record for Services revenue", said Tim Cook, Apple's CEO, in a statement sent to MobileSyrup.
iPad saw a 15% increase in units sold, jumping from 9.950 million to 11.424 million; however, Apple's tablet lineup only received a 2% boost in revenue, from $4.876 billion to $4.969 billion. Mac sales also rose 7 percent to Dollars 5.592 billion on 1 percent higher shipments, and sales from other products, such as the Apple Watch and Apple TV, increased 23 percent to USD 2.74 billion.More news: Tennessee bride 'put gun to groom's head and pulled trigger'
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Services, the branch of Apple that handles iTunes and the App Store, reported revenue of $7.3bn for the quarter, up 22 per cent and enough to crack the Fortune 100 on its own. This category includes Apple TV, Apple Watch, Beats products, iPod, and Apple-branded and third-party accessories.
Apple typically launches its new iPhone in mid- to late September.
But that doesn't necessarily mean iPhone 8 is going to be on schedule in early September.
Some critics say that Apple, which is nearing an $800 billion valuation, has become simply an iPhone company.
In after-hours trading, Apple's stock jumped about 5 percent on the news.
Given that new iPhones are around the corner, and considering the massive hype surrounding the iPhone 8 (or whatever it ends up being called), it doesn't surprise me that iPhone sales weren't anything to write home about. They further excited analysts by projecting a monster fourth quarter to close out fiscal 2017 - estimating up to $52bn - as it will release its next iPhone and ride a flurry of back-to-school sales in the coming months.