Apple posted a small gain in sales for the third quarter of the year.
While iPhone sales dipped, the company made up the difference in higher revenues in services such as its software store and music service.
Sales rose 1% to $53.8bn (£44.3bn), while net profit dropped 13% to $10bn. The company stemmed some of its drop in sales to China.
The results beat Wall Street estimates and shares gained 3.5% to $216.10 in after-hours trading.
For first time since 2012, iPhone sales represent less than half of company’s overall sales. Sales of the device are down by $741m on this period last year.
In China, sales fell 4% to $9.16bn, after a drop of 22% in the second quarter. Exchange rates have made the iPhone expensive for Chinese customers.
Apple forecast sales of between $61bn and $64bn for the final three months of its financial year.
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