Apple reported quarterly earnings and revenue that barely beat analysts' expectations on Tuesday, but the tech giant's stock fell more than 6 percent in after-hours trading.
The company posted fiscal third-quarter earnings per share of $1.85 on revenue of $49.6 billion. Analysts expected Apple to report earnings of $1.81 a share on $49.43 billion in revenue, according to a consensus estimate from Thomson Reuters. (Tweet This)
In percentage terms, this is Apple's smallest EPS beat in two years. Shares fell more than 8 percent in after-hours trading before paring some of those losses. At $119.81, Apple was at one point down more than $63 billion in value since Tuesday's close—that's roughly equivalent to a Lockheed Martin or a Priceline.
Still, CEO Tim Cook said on the earnings call that the company was "proud" of its results, especially given a "challenging" foreign exchange environment. He also highlighted growth in China, and said Apple is going "pedal to the metal" there despite some worries about a recent drop in its equities markets.
Shipments for the iPhone, Apple's biggest product category by unit sales and revenue, came in at 47.5 million, the company said. The iPhone remains a key data point for Apple's performance. Analysts were expecting 47.25 million shipments—down from a previously-announced 61.17 million the prior quarter.
Cook called the iPhone 6 is a runaway success, and that the product category is continuing to gain significant market share. On the call, he said that the phone's growth was triple the rate of the smartphone market overall.
"We sold more units than we thought we would," he said of the iPhone on the call. "We did exceptionally well in any way that you look at it."
He added that there is "a lot of headroom left for upgraders," as only 27 percent of the iPhone's install base have chosen to upgrade to an iPhone 6. "We are very confident that this quarter is going to be great," the CEO said of the ongoing fiscal fourth quarter, adding that the company is still seeing large numbers of first-time iPhone buyers.
Piper Jaffray analyst Gene Munster wrote in a note after the release that the extended-hours decline was because of disappointment in the iPhone number.
The iPad, meanwhile, shipped 10.9 million units (compared to 13.3 million in the year-ago period), according to Apple. Still, Cook said he remains "bullish" on the product, and that its upgrade cycle will "eventually occur."