Sales of Apple's iPhones fell at their steepest-ever rate during the three months to the end of March but are showing signs of stabilization. technology giant said revenue from the iPhone dropped by 1[ads1]7% to $ 31bn.
However, Apple chief executive Tim Cook said sales were stronger towards the end of March, including in China where the cut iPhone prices to boost demand
Apple lifted its outlook for the three months to June, sending its shares over 5% higher in after-hours trading.
The company had sold on iPhones sales earlier this year, including China where Apple competes with cheaper rivals such as Huawei Technologies and Xiaomi.
Mr Cook told Reuters that an improvement in demand for the iPhone in March as well as for products such as his watch, "give us the confidence that things are getting better"
Apple has lifted its guidance for its third quarter revenue of between $ 52.5bn and $ 54.5bn.
For the three months to March, total sales reached $ 58bn compared to analysts' estimates of $ 57.3bn.
However, that's below total sales of $ 61.1bn in the second quarter last year. And while demand improved in China, sales in the region were down by 20%.
Second quarter profits fell to $ 11.5bn compared to $ 13.8bn in the same period a year ago.
Apple is attempting to shift It has been reliant on the iPhone for services and last month unveiled its new TV streaming platform, Apple TV +, to take advantage of more established companies such as Netflix.
Revenue revenue rose to $ 11.4bn from $ 9.8bn in the same quarter year.
But Yoram Wurmser, principal analyst at eMarketer, said long-term growth in services and, to a lesser extent, other devices "depending on as many users as possible in the Apple ecosystem, and that's still primarily about the iPhone" .
"The long-term growth of the company still depends directly and indirectly on iPhone sales," he added.