Apple's share price jumped 4% after the announcement.
In the third quarter of the fiscal year, Apple's revenue from its services business grew by 12.6% to $11.46 billion, a record high, but still fell below its forecast of $11.73 billion, according to Lufford IBES data. Mr. Cook told Reuters that the service sector grew by 18% after eliminating one-time compensation and exchange rate effects from litigation a year ago.
After a 22% decline in the second quarter, sales in China fell 4% to $9.16 billion in the third quarter. According to Canalys, a market research firm, shipments in China's smartphone market fell by 6% in the third quarter.
Trade tensions between the United States and China have put a heavy strain on Apple, which has slowed China's economic growth in its main market. Earlier this year, Apple cut the price of the iPhone in China, which was previously unaffordable to many Chinese consumers due to exchange rate factors.
Cook told Reuters that Apple's performance in mainland China was positive. The mainland market is part of Apple's Greater China region.
"In fact, our business in mainland China is growing," Cook told Reuters. "Non-iPhone revenue has increased by 17%. We have grown in all areas except the iPhone.
Apple said it expected revenue in the fourth quarter to be between $610 billion and $64 billion, with analysts predicting $61.02 billion.
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