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Apple’s latest quarterly results, released moments ago, show a business in transition — represented by a continued decline in iPhone sales, which fell to 45.5 million units from 48 million units in the same period a year ago.

Apple CEO Tim Cook. (Photo: Apple)
Apple CEO Tim Cook. (Photo: Apple)

However, the iPhone number was still ahead of expectations for the quarter, and the company is reportedly expecting a strong holiday season as its largest rival, Samsung, deals with the aftermath of its Galaxy Note 7 discontinuation.

The company’s overall quarterly revenue of $46.85 billion was just short of analysts surveyed in advance by Thomson Reuters, but its earnings of $1.67 per share beat Wall Street’s expectations.

Apple touted its services revenue of $6.3 billion for the quarter, a new record, as the company made more money from Internet Services, AppleCare, Apple Pay, licensing and other services.

Apple CEO Tim Cook said in a statement, “We’re thrilled with the customer response to iPhone 7, iPhone 7 Plus and Apple Watch Series 2, as well as the incredible momentum of our Services business, where revenue grew 24 percent to set another all-time record.”

The results are for the quarter ended Sept. 24, which is Apple’s fourth fiscal quarter. The iPhone 7 and iPhone 7 Plus launched on Sept. 7, so the results take into account just a couple weeks of sales for the newest models of the company’s flagship smartphone.

Sales of the iPad fell 6 percent to 9.2 million units, and Mac sales declined 14 percent to 4.9 million units.

Apple’s earnings conference call is scheduled for 2 p.m. Pacific time.

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