Apple just announced its Q3 earnings, slightly beating Wall Street’s expectations on earnings per share.
It also beat expectations for the number of iPhones it would sell, hitting 40.4 million units versus the 39.9 million that analysts predicted.
But that number is still down year-over year. In Q3 2015 Apple sold 47.5 million units.
This is only the second time in Apple’s history that it’s seen a decline in iPhone sales. The first time happened last quarter.
CEO Tim Cook told The Wall Street Journal that iPhone demand was actually “better than what the sales figures showed, because [Apple] reduced inventory of the smartphone by more than four million units in its retail channels.”
Overall, the company’s stock was up about 5% after-hours.
Here’s a historical look at Apple’s iPhone sales, via BI Intelligence: