Apple reported revenue of 42.4 billion US dollars (£32.2bn) as it beat analyst expectations and responded to the company's first earnings decline in 13 years in the previous quarter of the year.
A drop in iPhone sales at the beginning of 2016 triggered that fall and while the latest figures were still down on the same period last year, Apple performed better than anticipated to report net income of 7.8 billion US dollars (£5.9bn).
The iPhone SE, Apple's first 4-inch smartphone since 2013, was launched in March as a lower cost alternative to their flagship 6s and 6s Plus.
Apple chief executive Tim Cook said: "We are pleased to report third quarter results that reflect stronger customer demand and business performance than we anticipated at the start of the quarter.
Industry experts had predicted the iPhone's sales had reached saturation point at the start of the year and would being to steadily fall.
"We had a very successful launch of iPhone SE and we're thrilled by customers' and developers' response to software and services we previewed at WWDC in June."
The firm's WWDC developer conference in June saw the next version of iOS, Apple's software for the iPhone and iPad, demonstrated for the first time before launching this autumn. A new iPhone is also expected to be announced in September.
Apple's chief financial officer Luca Maestri also revealed that the firm's App Store had broken records in the quarter, while use of Apple Pay use continued to grow.
"Our Services business grew 19% year-over-year and App Store revenue was the highest ever, as our installed base continued to grow and transacting customers hit an all-time record," he said.