Driven by stronger-than-expected iPhone sales, Apple (AAPL) reported fiscal Q2 results late yesterday, May 4, that exceeded Wall Street's downbeat expectations. Aside from iPhones, however, most other Apple’s divisions posted annual revenue declines. Thus, Products revenue was $73.9 billion, down 5% from last year, due to challenges on Mac and iPad lineups. iPhone, however, reached a March quarter revenue record thanks to very strong performance in emerging markets from South Asia and India to Latin America and the Middle East. Shares of the tech giant rose over 2.2% premarket as Apple released upbeat forecast numbers.

Most importantly, despite the overall optimistic tonality of the reported numbers, Apple's overall revenue declined for the second consecutive quarter, which represents a rather troublesome sign. Apple reported that its revenue fell 3% to $94.8 billion in the first three months of the year, as consumers scaled back spending on smartphones and computers amid looming recession fears. In terms of Apple’s sales segmentation, iPhones set a new March quarter record with revenue of $51.3 billion. The iPhone 14 and 14 plus led the spree by pleasing users with their long-lasting battery and more advanced camera. The Mac lineup recorded $7.2 billion in revenue for the March quarter, in line with expectations; iPad revenue was $6.7 billion, which was also in line with the management guidance.

The company's earnings, however, came in slightly better than consensus forecast. Apple's net income also fell more than 3% on an annual basis to nearly $24.2 billion.

Apple tried to reassure investors by announcing up to $90 billion in share buybacks.