Apple’s iPhone business may be struggling, but the company is pretty optimistic about the services running on the device. In its third-quarter earnings report Tuesday, Apple offered a rosier-than-expected prediction for the next period thanks to things like the App Store as well as other products like wearables, even as iPhone sales have continued their trend of declines.

The company no longer breaks out the number of smartphones it sells each quarter, but Apple said iPhone sales slid 12% to $26 billion in its fiscal third quarter. Higher services revenue, combined with rising iPad, Mac and wearables sales, helped the company eke out a gain in third-quarter revenue. Its overall sales and profit were better than expected.

CEO Tim Cook noted that the period was Apple’s biggest June quarter ever. In a press release, he highlighted “all-time record revenue from services, accelerating growth from wearables, strong performance from iPad and Mac and significant improvement in iPhone trends.”

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