Apple Inc. stocks hit a record high earlier today at more than $147 per share with a market capitalization of more than $776 billion, but not for long.

The iPhone and Mac computer maker’s shares dropped by more than 3 percent in after-hours trading today after the Cupertino, California-based company revealed disappointing iPhone sales in its second-fiscal quarter earnings results.

According to Apple’s earnings report, the company grossed $52.9 billion in total revenue for its second fiscal quarter, coming in just below the $53.02 billion expected by Thomson Reuters’ consensus. But Apple was slightly more profitable than expected, with earnings of $2.10 per share compared with the predicted $2.02 per share.

Perhaps the most disappointing numbers on Apple’s report were unit sales for the iPhone, which sold less than expected for the quarter. Apple sold some 50.7 million iPhones in the quarter, missing its own target of 52 million units. IPhone sales have dropped by roughly 1 percent year-on-year in the face of increased competition from more credible rival high-end smartphones.

Apple Chief Executive Tim Cook glossed over the missed sales in his prepared remarks, instead highlighting healthy demand for the newest iPhone model.

“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,” Cook said in a statement. “We’ve seen great customer response to both models of the new iPhone 7 (PRODUCT)RED Special Edition and we’re thrilled with the strong momentum of our Services business, with our highest revenue ever for a 13-week quarter.”

During the Q&A portion of Apple’s earnings call with investors today, Cook suggested that consumers’ interest in having the latest and greatest iPhone could actually be one explanation for why sales may have slumped.

“In general what we are seeing is what we believe to be a pause in purchases on iPhone, which we believe are due to the earlier and much more frequent reports about future iPhones,” Cook said. “That part is clearly going on, and it could be what’s behind the data.”

In response to another question, Cook also noted that Apple saw the more users upgrading from one iPhone to another than ever before in the first fiscal quarter of this year. Cook said that demand for the iPhone 7 Plus is growing “incredibly fast” around the world.

Although Apple’s iPhone sales may have come as a disappointment, the company did have some some good news for investors today. Apple’s board of directors increased its share repurchase authorization to $210 billion, up from the $175 billion they announced last year. The board also approved a 10.5 percent increase to the company’s quarterly dividend and declared a dividend of 63 cents per share of its common stock.

Despite the slight drop in Apple’s shares this afternoon, the company retains the highest U.S.-listed stock valuation, with a market cap that is still well over $700 billion. Meanwhile, both Microsoft Corp. and Alphabet Inc. are listed at less than a $700 billion market cap.

“The bottom line was that this was a relatively subdued quarter and call,” Macquarie Research analyst Ben Schachter wrote in a note to clients. “The Services business continues to perform well and we expect more and more investors will build out detailed models and focus more on the key Services drivers. That will continue to be a positive for the stock.”

Photo: Apple