Apple, Inc. has reported another quarter of falling revenue and profit as iPhone sales continue to slump, although not by as much as the market had expected.

For the third quarter ending June Apple posted quarterly revenue of $42.4 billion and quarterly net income of $7.8 billion, or $1.42 per diluted share, compared to revenue of $49.6 billion and net income of $10.7 billion, or $1.85 per diluted share for the same quarter of 2015.

The profit figure was down a whopping 27 percent year-on-year.

Leading the decline was the continued decline in sales of Apple’s iPhone range, which the company first predicted in February.

iPhone sales for the quarter fell 15 percent from the same period last year to 40.4 million unit, which according to Bloomberg still exceeded the analyst estimates of 39.9 million units; the unit number was boosted by increasing sales of Apple’s entry-level iPhone SE but because of its cheaper price iPhone revenue dropped to $24.05 billion, down 23 percent from the same quarter last year.

Mac sales continued to decline as Apple seemingly ignores the unit by failing to provide updates across key product lines and was down 13 percent year-on-year.

Surprisingly Apple’s iPad line showed a 7 percent increase in profit for the quarter over the same quarter of 2015 off the back of increased sales of more expensive iPad Pro, while overall sales of iPad’s continued to decline.

It wasn’t all doom and gloom however with Apple’s services unit, which includes Apple Music and iCloud reporting revenue of $5.97 billion, up 19 percent year-on-year, while Apple’s App Store is said to have had its highest revenue ever.

“We are pleased to report third quarter results that reflect stronger customer demand and business performance than we anticipated at the start of the quarter,” Apple Chief Executive Officer Tim Cook said in a statement. “We had a very successful launch of iPhone SE and we’re thrilled by customers’ and developers’ response to software and services we previewed at WWDC in June.”

China syndrome

Apple sales dropped in every global market except Japan, but leading the pack was Greater China (including mainland China, Hong Kong, Macau and Taiwan) where sales dropped a whopping 33 percent, followed by the rest of the Asia-Pacific down 20 percent, America’s 11 percent and Europe 7 percent.

According to The Wall Street Journal Apple blamed currency impacts for the decline in China, saying that sales on the mainland were down only 2 percent in the quarter.

“Over the long haul, we’re very bullish in China,” Cook told investors on a call following the results. “There will be some potholes along the way and speed bumps, but I think China is an unbelievable place and I haven’t seen anything that causes me pause on that.”

Despite falls across the board, the market reacted positively to the results because they had expected worse figures, and pushed APPL shares up 6.81 percent to $103.25 in after-hours trading.

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