Apple reported that it earned a net income of $24.16 billion on revenues of $94.84 billion in the quarter ending April 1. Both figures were down—net income by 3.4 percent and revenues by 2.5 percent—and the quarter marked the second in a row in which the firm experienced a year-over-year (YOY) shortfall. But Apple still beat earnings estimates, and CEO Tim Cook said the quarter was “better than expected.”

“We are pleased to report an all-time record in Services and a March quarter record for iPhone despite the challenging macroeconomic environment, and to have our installed base of active devices reach an all-time high,” Mr. Cook said. “We continue to invest for the long term and lead with our values, including making major progress toward building carbon-neutral products and supply chains by 2030.”

The iPhone remained Apple’s biggest business by far, with $51.3 billion in revenues, a gain of 1.5 percent over the same quarter one year ago. The iPhone represented over 54 percent of Apple’s revenues in the quarter.

Services was Apple’s second biggest business, with $20.9 billion in revenues, a gain of 22 percent YOY. But the rest of the company experienced revenue drops. Wearables, Home, and Accessories took in $8.76 billion in revenues, a drop of 0.56 percent (basically flat). The Mac accounted for $7.17 billion in revenues, a drop of 32.3 percent YOY. And the iPad delivered $6.67 billion in revenues, a drop of 12.8 percent YOY.