Much to Wall Street's surprise, the iPhone hasn't died.
The company earned $2.73 per share on revenue of $61.1 billion, while analysts polled by FactSet were expecting Apple to report earnings of $2.67 per share on revenue of $60.82 billion. Apple announced that it was raising its dividend by 16% and announced a new $100 billion share buyback plan.
Apple said it sold 52.2 million iPhones during the three-month period, in line with analysts' expectations, bringing in revenue of $38 billion.
Services -- including Apple Music -- brought in revenue of $9.1 billion, topping analysts' consensus estimate of $8.3 billion. In addition, growth in greater China and Japan was up more than 20% during the company's second fiscal quarter.
Apple forecast revenue between $51.5 billion and $53.5 billion for its fiscal third quarter, along with gross margin between 38% and 38.5% and operating expenses between $7.7 and $7.8 billion.
Munster said the core focus of Apple's business will likely shift from iPhone sales to services like Apple Music and buybacks, "which allows investors to not stress about the iPhone."
Forte said that, in addition to the buybacks, Apple also has the power to increase dividends and make a significant acquisition, if they choose to do so.
"In my mind, it (an acquisition) has got to be in (the) connected home," Forte said, as Apple was relatively late to market with the HomePod smart speaker compared to competitors Amazon.com Inc. (AMZN - Get Report) and Alphabet Inc.'s Google (GOOGL - Get Report) .
The repurchase program timeline is open-ended, but Munster predicts the process will take two or two and a half years.
Apple shares rose 3.4% to $174.85 during after-hours trading Wednesday after closing at $169.10, gaining 2.3%. The stock has increased 3.8% over the past five trading days.