Tim Cook insists Apple Intelligence is convincing people to upgrade — even if the features are underwhelming so far.

The tech giant’s sales of apps and services helped profit grow 7 percent from a year ago, even as the company contended with slumping sales in China.

Apple (AAPL) reported fiscal first-quarter earnings that topped estimates as its services revenue rose, though iPhone sales fell short. The iPhone maker’s revenue rose 4% year-over-year to a record $124.

Apple's latest earnings were a mixed bag, with slipping iPhone sales countered by rising revenue. Reporting after the bell Thursday, the iPhone maker’s

Apple posted a revenue increase in the important Christmas quarter despite a decline in iPhone sales. Growth in Mac computers, iPads and services more than offset the decline in iPhone sales, according to the fourth quarter report released by the US company on Thursday.

Apple reported fiscal first-quarter earnings Thursday. Analysts are focused on iPhone momentum following a sluggish start to the year for Apple's stock.

Apple reported $18.5 billion in sales in greater China last quarter, comfortably below consensus estimates of $20.9 billion.

Apple’s shares jumped in after-market trading on Thursday after the company reported a decline in iPhone sales and a double-digit drop in its China market revenue in the last quarter. The Californian-based company earned more than $69.