=Apple (AAPL) reported earnings on Tue 26 Jul 2016 (a/h)

Apple Inc. reported a steep slump in revenue and profit on Tuesday, but the still-better-than-expected results from the iPhone maker are cheering analysts who see significant growth going forward and are staying upbeat on the stock.

The tech giant  said its fiscal third-quarter profit slid 27% to $7.8 billion, or $1.42 a share, while revenue declined 14% to $42.36 billion. Analysts had expected profit of $1.39 per share and revenue of $42.16 billion.

Sales of Apple’s flagship smartphone declined for a second quarter in a row to 40.4 million units from 47.5 million units a year earlier.