Apple reported a second consecutive quarterly revenue decline this week, despite celebrating growth in its iPhone product line.

Although the company exceeded Wall Street’s predictions, the tech giant still posted a revenue decline of 3% to $94.8bn. It also posted a decrease in its net income of around 3% from last year’s quarter to around $24.2bn. 

However, the company celebrated an increase of 2% in its overall iPhone sales, bringing in $51.33bn against a $48bn Wall Street prediction. 

“It was quite a good quarter from an iPhone point of view, particularly relative to the market when you look at the market stats,” Apple CEO Tim Cook told CNBC.

The slight increase indicates that supply chain issues that have plagued Apple’s iPhone sales for a few years may have finally come to an end. 

Apple also reported an all-time services sales record of $20.9bn. This covers the company’s subscription products like Apple Music and Apple TV+ which have become an important factor in its overall revenue. 

The company welcomed 150m new subscribers across its services over the past year, meaning it now hosts over 975m paid subscriptions, according to CFO Luca Maestri. 

Despite Apple beating Wall Street’s estimates, the quarterly earnings represent a struggling tech economy – with all of the big players finding it difficult to grow profits and sales. 

Speaking at an analyst call this week, Cook shared his insights into how Apple is approaching artificial intelligence – a hot topic in the industry right now. 

“We view AI as huge, and we’ll continue weaving it into our products on a very thoughtful basis,” Cook said.

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