Apple iPhone

The tech giant sold 45.51 million iPhones in the three months to 24 September, beating an average estimate of 44.8 million.

The company also forecast higher-than-expected holiday season revenue of between $76bn and $78bn.

But revenue in the fourth quarter fell 9% to $46.85bn.

That meant annual revenue fell for the first time since 2001, highlighting a slowdown in the smartphone market as well as intensifying competition, particularly from Chinese rivals.

The photo shows what Apple fans believe is the 'iPhone 5se', the iPhone model Apple is expected to launch in March, pictured beside the iPhone 5. It was published on website OneMoreThing, the same site which had a leaked image of the iPad Air 2 display two years ago as well as the iPad Air design.

Invites were sent Thursday that read "Hey Siri, give us a hint," referring to the personal digital assistant available to owners of Apple mobile devices. (Alas, Siri offers only cryptic replies such as, "Why don't you check a rumors blog? That's what I do." and "You're cute when you're desperate for information.")

The new phone is expected to feature enhancements including the force touch display, a better camera and a faster processor.

Apple may also unveil a new version of the iPad -- a 12.9-inch "Pro" model, according to a report by John Paczkowski of BuzzFeed.

A company spokesman declined to comment.

Sure, it can do many useful, even delightful things, such as showing incoming texts and email, tracking heart rates during exercise or sending digital doodles to friends. But is that enough to spend $350 or more, especially when it requires wearing a watch again while still carrying an iPhone around?

Early Apple Watch owners seem generally happy with it, but Apple's bigger worry should be those on the sidelines - even hardcore Apple fans, not to mention everybody else - who are waiting to take the plunge.