Apple sold 50.76 million of its iconic iPhones during the first three months of 2017. That helped the company generate $52.9 billion in revenue, a 4.5 percent increase from the same period last year. The number of iPhones snapped up by consumers was essentially flat, shrinking by 1 percent over the second quarter of last year. But the average sale price per smartphone climbed, helping power the company to more than $11 billion in net profit.

When asked about flat iPhone sales, Apple CEO Tim Cook pointed to rumors of a new iPhone 8 with a radical design overhaul as the culprit. “We're seeing what we believe to be a pause in purchases of iPhone, which we believe is due to the earlier and much more frequent reports about future iPhones," he said on an earnings call this afternoon. “That part is clearly going on... We are seeing that in full transparency."

Cook is in an interesting position: Apple continues to add eye-popping amounts of money to its record-setting stockpile of cash. But it has struggled to find a new hardware product that can deliver the kind of earnings growth the iPod, iPhone, and iPad did. This time last year, Apple saw its revenue decline for the first time in 13 years.

That dynamic seems to be shifting. Apple said that sales of its Apple Watch almost doubled over the last year, and that overall revenue from sales of wearable devices, including watches and headphones, is larger than a Fortune 500 company — worth at least $5.1 billion. Apple’s services revenue also grew strongly, topping $7 billion. The company said that it added more paying accounts into its digital ecosystem over the last 90 days than it had during any previous quarter.

And Cook said on today’s call that sales of larger iPhones, like the 7 Plus, were higher than ever in China, helping to boost Apple’s revenues even as unit sales slipped. Despite that highlight, the overall business in greater China wasn’t good. That region was the major driver of Apple’s growth during 2014 and 2015. But today’s earnings report showed revenue from that region down 14 percent year over year.

In October of last year, Cook promised that the company, which has more than doubled its spend on R&D over the last three years, would find a way to return to growth. It managed that this quarter, although it made nothing like the massive leaps it was making five years ago. It has been testing its own self-driving car technology, and is reportedly working on a Siri-powered speaker that would compete with Google Home and Amazon’s Echo.

Apple initiated a legal fight with Qualcomm back in January and said recently that it won’t be paying the chip maker any royalties while the legal dispute is ongoing. But the company said on today’s earnings call that the money its accruing during this spat won’t have any impact, positive or negative, on its earnings. The company projected it would earn between $43.5 and $45.5 billion in revenue, well below the $49.6 billion it reported for the third quarter of 2015.