Apple(AAPL) - Get Report shares fell sharply after hours, after the company released second-quarter earnings today and missed analysts estimates. The tech giant has been facing a difficult comparison to last year's strong revenue figures and iPhone sales. Currency headwinds also continue to affect the company's sales worldwide, particularly in major emerging markets: China and India.  

Image placeholder title

Apple is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. See how Cramer rates the stock here. Want to be alerted before Cramer buys or sells AAPL? Learn more now.

Second Quarter Highlights: 

  • iPhone sales declined for the first time ever in the second quarter, 51.2 million iPhones sold compared to 62 million sold in the same period of 2015.   
  • Apple revenues also declined to $50.6 Billion, a decrease of 13% year-over-year.
  • Earnings-per-share came in at $1.90, falling short of consensus analysts estimates of $2.00 per share.  
  • Net Income stood at $10.5 billion for the quarter.
  • Apple now holds approximately $239 billion in cash -- 90% is held outside of the United States.
  • Services is now the second-biggest segment of Apple's business -- $6 billion in revenue.   
  • App Store revenue was up 35%.
  • Apple Music now has 13 million paying customers.
  • Apple Pay transaction volume has increased five times compared to last year .
  • 4 million Mac's sold.

When asked about the current state of the Smartphone market, Apple CEO Tim Cook said that "the market is not growing, however, that is an overhang of macroeconomic environment in many different parts of the world."

Cook remained optimistic for the long term and said that the weak macro environment shall pass. Cook also placed heavy emphasis on targeting emerging markets for iPhone Sales growth particularly in India, the worlds third-biggest smartphone market.  

One key for these markets is the LTE infrastructure that allows consumers to utilize the full potential of the iPhone.  

"The LTE rollout really began in India this year. That will unleash the power and capability of the iPhone," said Cook. "India is where China was seven-to-ten years ago and I think there is some really great opportunity there." 

Still, investors are not convinced that Apple can continue to innovate at a level that will create new growth. The company offered weak guidance for the third quarter in the $41-to-$43 billion range. The stock is down 8% after hours.

This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.