Apple Q2 beats estimates on record high services revenue

Nonetheless, both Apple's earnings and revenue were down compared to the year-ago and iPhone sales continue to drop.

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Apple published its second quarter financial results on Tuesday, beating market expectations and delivering strong Services revenue, which reached an all-time high of $11.45 billion. Nonetheless, both Apple's earnings and revenue are down compared to the year-ago quarter and iPhone sales continue to drop.

The Cupertino tech giant reported a fiscal second quarter earnings of $2.46 a share, down 10% year-over-year, on revenues of $58 billion, down 5% from the same quarter last year. Wall Street was expecting earnings of $2.36 per share on revenue of $57.37 billion.

"Our March quarter results show the continued strength of our installed base of over 1.4 billion active devices, as we set an all-time record for Services, and the strong momentum of our Wearables, Home and Accessories category, which set a new March quarter record," said Apple CEO Tim Cook. 

Apple no longer breaks out product unit sales by device, but Cook noted that Apple saw its strongest iPad growth in six years during Q2. Here's a look at the device revenue breakdown compared to the previous year:

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As for its geographic segments, revenue from the Americas totaled $25.596 billion, China revenues came to $10.218 billion, Europe revenues totaled $13.054 billion, Japan revenues came to $5.532 billion, and revenues from the rest of the Asia Pacific came to $3.615 billion. 

In terms of guidance Apple said it expects revenue between $52.5 billion and $54.5 billion for its current third quarter. Wall Street was expecting an outlook of $2.07 a share on earnings and revenues of $51.93 billion. Shares of Apple were up nearly 5% in after-market trading.