Apple iPhone sales go down in Q2 2017

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"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", Tim Cook, Apple's CEO, said in the statement. The Apple share price has, of course, benefitted from improved investor sentiment.

Some of the noteworthy features that are likely to make their way into the next-gen aka tenth-anniversary iPhone are listed below: 5.8in bezel-less aka edge-to-edge display and integrated Touch ID, front camera, speaker and sensors.

Nevertheless, the majority of analysts remain bullish on Apple's stock price heading into the second half of the year. The company said it will return more of that to shareholders, announcing $50bn in new buy-backs and a 63c dividend. However, the analyst increased his fiscal year 2018 EPS view to $10.34 from $10.21. He did not identify the company, but said more about the fund will be announced later this month.

iPhone and iPad sales have fallen year-on-year, according to quarterly reports released by Apple.

Much is riding on the success of the next iPhone.

Apple's earnings per share were higher than expected at $2.10, compared to $2.02 while its market cap slipped to $765 billion during after hours trading due to the poor results.

Apple is also facing competition for its MacBooks, as on Tuesday, Microsoft revealed a sleek new laptop for students that's created to compete with the MacBook Air. Though the company could generate year-over-year revenue growth from most of the regions, it suffered a setback in Greater China where it suffered 14 percent drop in revenue.

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Earnings per share of US$2.10 were ahead of market expectations of US$2.02 and were up 10.5% from US$1.90 a share the year before.

While a 1 percent decline is not a big deal, that's still 430,000 units lower than previous year.

What happened to iPhone sales?

Cook has repeatedly sought to highlight Apple's services, the fastest growing part of the company a year ago.

Despite management's goal to double Services revenue by 2020 (revenue grew 18 per cent year-over-year to US$7.04 billion in Q3), investors remain focus on the iPhone.

Services remain a bright spot for the company as it moves to diversify its revenue streams. Apple has benefited from this as much as anyone in the tech sector.

"There's a huge opportunity for Apple there", he said.

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