Strong iPhone sales in China and record services revenue drive third-quarter results for Apple.
The jump in digital services sales testifies to Apple's progress in selling other products to its installed base of iPhone users.
The new streaming platform may face heavy competition from the likes of Netflix but should grow Apple's services business.
The company is facing criticism over its response to a flaw in its FaceTime app.
CEO Tim Cook says the revenue shortfall "is over 100 percent from iPhone and it's primarily in greater China."
The company's revenue projection for the holiday season fueled concerns that slowing growth "could translate into a new growth paradigm.”
Speaking at a conference in Brussels, Apple's CEO said Europe's privacy regulations should be a model for policymakers.
iPhone sales totaled 50.76 million, missing analysts' estimates, but consumers may be looking ahead to a big upgrade.
Sales of the flagship iPhone increased 5% in the first quarter, helping Apple to snap a streak of declining revenue.
The European Commission says Ireland improperly allowed Apple to avoid paying taxes on almost all profits from sales in the EU.
The company suffered its first quarterly revenue decline in 13 years as its flagship smartphone appears to be nearing saturation point.
The company is opposing a court order requiring it to help the FBI unlock the iPhone of one of the San Bernardino mass shooters.
