Apple on Tuesday announced its fiscal third-quarter results. The company posted quarterly revenue of $42.4 billion and quarterly net income of $7.8 billion, down from the $49.6 billion revenue and profit of $10.7 billion reported in the year-ago quarter.

Apple sold 40.3 million iPhones in this quarter, down from the 47.5 million in the year-ago quarter. The company also sold 9.95 million iPads this quarter, down from the 10.9 in the year-ago quarter, and 4.2 million Macs, down from the 4.7 million in the year-ago quarter.

“We are pleased to report third quarter results that reflect stronger customer demand and business performance than we anticipated at the start of the quarter,” said Tim Cook, Apple’s CEO. “We had a very successful launch of iPhone SE and we’re thrilled by customers’ and developers’ response to software and services we previewed at WWDC in June.”

If there is one bright spot for the company, it was in services.

“Our Services business grew 19 percent year-over-year and App Store revenue was the highest ever, as our installed base continued to grow and transacting customers hit an all-time record,” said Luca Maestri, Apple’s CFO. “We returned over $13 billion to investors through share repurchases and dividends, and we have now completed almost $177 billion of our $250 billion capital return program.”