Sales from Apple's wearables category helped make up for weak iPhone sales this quarter. iPhone revenue came in at $26 billion, down from $29.5 billion in third quarter of 2018.
Apple CEO Tim Cook said that wearables had an "absolute "blowout" quarter with growth well over 50 percent. Apple Watch set a new June quarter revenue record and is reaching millions of new users. More than 75 percent of buyers in the June quarter were first time Apple Watch buyers.
Apple's services category, which hit a new all-time high revenue record of $11.46 billion, also helped Apple make up for the 12 percent decline in iPhone revenue.
Wearables and services combined are now the size of a Fortune 50 company according to Cook. Cook also said that Apple's wearables business is larger than 60 percent of companies in the Fortune 500.