• by Gavin O'Malley  @mp_gavin, October 25, 2016

Due to slower iPhone sales, Apple posted profit and revenue declines for the third straight quarter, on Tuesday. During its fiscal fourth quarter, the tech giant saw net income fall 19% to $9 billion, year-over year, and revenue fall 9% to $46.9 billion.

On the bright side, the results were toward the high end of analysts’ guidance range, Apple CEO Tim Cook noted on Tuesday. 

“Our results for the quarter were very strong,” Cook told analysts on an earnings call. It’s also worth noting that Apple’s latest smartphone, the iPhone 7, launched just a week before its fiscal fourth quarter ended on September 24.

Since its launch, the iPhone 7 has been selling like hotcakes, Cook assured.

“Demand continues to outstrip supply,” he said on Tuesday. “Underlying demand looks extremely strong.”

Year-over-year, however, iPhone sales declined by about 13% to 45.5 million units. More than any other factor, Cook attributed this drop in phone sales to evolving adoption trends in China.  

Apple services (which include the App Store, iTunes, Apple Music, and Apple Pay) generated $6.3 billion during the past quarter -- up from $5 billion, year-over-year.

Boosting these numbers, “App store revenue continued to skyrocket,” Cook said on Tuesday.

For the coming quarter, Apple said it expects revenue of $76 billion to $78 billion, which would represent a “return to growth,” Luca Maestri, Apple’s CFO, said on Tuesday.  

For its fiscal first quarter of 2017, Apple also expects gross margin of 38% to 38.5%, and operating expenses between $6.9 billion and $7 billion.