Net income for the quarter ending December 26 was two percent higher than the same period a year earlier at USD 18.4 billion, while revenue of USD 75.9 billion set another record for the company, also edging up two percent.

The results were largely in line with expectations that sales of iPhones – the driver of two-thirds of Apple revenue – had peaked and that the company would need to find new sources of growth.

Apple shares have slid 20 percent since last year on these concerns. But in after-market trade yesterday the stock was down a modest 0.7 percent at USD 99.30.

"Our team delivered Apple's biggest quarter ever, thanks to the world's most innovative products and all-time record sales of iPhone, Apple Watch and Apple TV," chief executive Tim Cook said in an earnings release.

Apple reported that, overall, a billion iPhones, iPads, Macintosh computers, iPod touch devices, Apple TV units, and Apple Watch wearable computers had 'engaged' with its services in the past three months.

In the fiscal quarter Apple sold 74.8 million iPhones – a record, but only fractionally higher than the 74.5 million in the same period last year and the slowest growth since the lifestyle-altering handsets were introduced in 2007.

Revenue in 'Greater China' was up 14 percent for Apple but weaker in the US and Japan.