As was widely anticipated, (NASDAQ: AAPL) reported lower year-over-year revenue for its quarter ending in early July. The decline wasn't as dramatic as feared, however. Its top line fell from $83 billion a year earlier to $81.8 billion this time around versus estimates of $81.7 billion. Earnings grew from $1.20 per share then to $1.26 now, topping estimates of $1.19 per share.

Once again, declining iPhone revenue is a key culprit in this third consecutive quarterly revenue dip. Apple only sold $39.7 billion worth of the popular smartphone during its third fiscal quarter of the year, down from the year-ago comparison of just under $40.7 billion.

Let there be no mistake -- the revenue dip isn't solely the result of lower selling prices. Apple is selling fewer iPhones.

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Source Fool.com