For the recently reported quarter, Apple Inc. (NASDAQ:AAPL) sold 51 million iPhones, an increase of 7% year over year, but below analyst expectations of 52 million. The revenue from iPhones surged to a record high at $32.5 billion, which is an increase of 7.4% year over year, representing 56.4% of the total revenue. According to a report from Hilliard Lyons by analyst Stephen Turner, the average selling price per iPhone came down marginally from the previous year’s corresponding quarter, and increased substantially on a sequential basis.

Apple AAPL earnings

The reports from Comscore suggested that Apple Inc. (NASDAQ:AAPL) was at the top spot amongst the smartphone manufacturers, in November, in the United States, clocking in 41.2% of the smartphone market, which is an increase from 35% in the prior year period. Further, the analyst notes “higher than expected ASP highlights the strength of iPhone 5S sales.”

iPad sales up, iPod down

Revenue from iPad came in at $11.5 billion, an increase of 7.4%, contributing 20% of the total revenue. Unit sales of the iPad came in at 26 million, below the analyst estimate of 30 million units but above the consensus estimate. Apple Inc. (NASDAQ:AAPL) garnered more sales with the recent launch of iPad Air and iPad mini.

Sales of iPod declined more than what was estimated at 52% year over year to 6 million units. Revenue came in at $973 million, and sales of the iPod contributed just 1.7% of total revenue.

“Sales continue to be cannibalized as consumers shift to purchasing iPhones and iPads,” according to analyst Stephen Turner. “Despite iPod cannibalization, the average selling price remained flat y/y.”

Apple Mac sales impressive, despite PC slump

Mac sales were upbeat increasing 16% year on year to $6.4 billion. Unit sales of Mac increased 19% year on year to 4.84 million units compared to a 7% decline in the PC market, according to Gartner. Mac is penetrating deeper in the market with more of sales, and the analyst expects the trend to continue. Average sales price (ASP) of Mac increased sequentially on a refreshed product line-up.

Apple Inc. (NASDAQ:AAPL) garnered record revenue of $4.4 billion, an increase of 19% year over year from iTunes/Software/services segment fueled by the strong app sales even though the company offers most of its software free of charge. The iTunes/Software/Services sales accounted for 7.6% of total revenue.

The analyst has lowered the rating on Apple Inc. (NASDAQ:AAPL) from Buy to Long-term Buy, and raised the price target from $580 to $600 “based on a longer investment time horizon.”