Apple’s fiscal fourth quarter revenue of $64 billion set a record for the company’s September quarter, although a modest 2 percent year-over-year (Y/Y) increase and 19 percent above the prior quarter. Excluding iPhone revenue, Apple grew 17 percent Y/Y, compensating for a 6 percent Y/Y decline in Mac revenue.

iPhone sales contributed $33 billion, down 9 percent Y/Y and 52 percent of Apple’s revenue.

CEO Tim Cook said, “This 9 percent decline over last year is a significant improvement over the 15 percent decline we saw across the first three quarters.” He said the new iPhone 11, introduced at the end of the quarter, has become the best selling iPhone in the family — as you would expect.

Apple continued its shift toward services, with revenue in this segment reaching $12.5 billion, another record reflecting individual milestones from the App Store, AppleCare, Apple Music, cloud services and the App Store search ad business.

Apple’s wearables category, which includes the Apple Watch, AirPods and Beats, grew 54 percent Y/Y to $6.5 billion, just behind the revenue generated by the Mac, the product category that put Apple in business.

Cook said Apple’s position in China has improved, with revenue growing slightly in the quarter in constant currency or down 2 percent including foreign exchange. He said the iPhone 11, 11 Pro and 11 Pro Max are being well received, aided by Apple’s pricing and trade-in program. More broadly, he said “I think the trade tension is less and that clearly looks positive right now with the comments that we've been reading in the press.”

For the December quarter, Apple expects revenue to reach $85.5 billion to $89.5 billion. The midpoint represents 3.8 percent Y/Y and 37 percent sequential growth.