Apple, the world’s most valuable company, reported its latest financial results on Thursday, revealing a mixed bag of record-breaking numbers and disappointing sales figures. Despite falling short of expectations in iPhone sales and China revenue, Apple’s overall performance was buoyed by strong growth in its services division.

The tech giant reported a record $124.3 billion in revenue for the last three months of 2024, narrowly beating analyst forecasts. Apple’s earnings per share also reached a new high of $2.41, surpassing estimates of $2.35.

However, iPhone sales, which account for the majority of Apple’s revenue, fell short of expectations. The company reported $69.1 billion in iPhone sales, missing estimates of $70.7 billion. This decline was attributed to the launch of the new AI-enabled iPhone 16 model, which failed to meet sales expectations.

Apple’s China sales also disappointed, coming in at $18.5 billion, below estimates of $20.9 billion. This represents an 11% year-over-year decline, sparking concerns about Apple’s performance in the world’s second-largest economy.

Despite these setbacks, Apple’s services division shone brightly, generating a record $26.3 billion in quarterly revenue. This represents a 14% year-over-year increase, driven by growth in the App Store, AppleCare, and Apple Music.

Apple CEO Tim Cook expressed optimism about future iPhone sales, citing the positive impact of Apple’s AI-ready operating systems in markets where they have been launched. Cook’s bullishness helped boost Apple shares by 3% after hours.

Overall, Apple’s record results demonstrate the company’s resilience and ability to adapt to changing market conditions. While iPhone and China sales may have disappointed, the growth of Apple’s services division provides a promising outlook for the company’s future performance.