Apple returned to top-line growth in its fiscal Q3, shrugging off a slight drop in iPhone sales and declining revenue in China with the increase driven by a double-digit improvement in services and iPad gains.

Net profit in the period (the three months to 29 June) increased 7.9 per cent year-on-year to $21.4 billion. Total sales improved 4.9 per cent to $85.8 billion, led by a 14.1 per cent increase in services to $24.2 billion.

In its earnings call CEO Tim Cook noted the revenue figure, a record fiscal Q3, was “better than we had expected” and set records in more than two dozen countries and regions. These included Canada, Mexico, France, Germany, the UK, India, Indonesia, the Philippines and Thailand.

Sales increased in all regions except for Greater China, which fell 6.5 per cent to $14.7 billion, while Asia Pacific revenue grew 13.5 per cent to $6.4 billion.

Cooked noted more than half of the decline in China was currency related, adding nine months after launch the iPhone 15 is outperforming the 14 series over the same period in the country.

“We continue to be confident in the long-term opportunity in China,” he added.

iPad sales jumped 23.6 per cent to $7.2 billion, while Mac revenue was up 2.4 per cent to $7 billion. Wearables, home and accessory sales were down 2.3 per cent to $8.1 billion.

The CEO said he is excited about Apple Intelligence and remains “incredibly optimistic about the extraordinary possibilities of AI and its ability to enrich customers’ lives. We will continue to make significant investments”.