Apple's not selling as many iPhones as it used to

iPhone sales aren't as hot as they used to be.

The company announced its Q1 2018 earnings on Thursday and -- surprise, surprise! -- it set another all-time quarterly revenue record, bolstered by iPhone sales.

Total revenue this past quarter increased to $88.3 billion from $78.4 billion, a 12.63 percent increase year-over-year. But while revenue increased, iPhone sales dropped.

Though the company doesn't break unit out individual unit sales by model, Apple says it sold 77.3 million iPhones -- a decrease from the 78.2 million iPhones it sold in the same period in 2017.

Apple revealed the average sale price for an iPhone jumped to $796; the ASP for iPhone was $695 a year ago.

That said, Apple CEO Tim Cook, was quick to note that this year's quarter was a week shorter than last year's. It's possible Apple could have matched year-over-year iPhone sales with an additional week.

Despite the drop in iPhone sales last quarter, Apple CEO Tim Cook says the company's "achieved a significant milestone with our active installed base of devices reaching 1.3 billion in January." Cook says that's a 30 percent increase within the last two years.

Cook brushed off the sales drops as anything to worry about. According to Cook, the iPhone X was the best selling smartphone in the world based on Canalys figures, and it's the company's best-selling iPhone since it launch. "For us, it’s not the numbers. It’s customers satisfaction. Customer satisfaction is off the charts for iPhone X."

"In urban China and the U.S., the top five smartphones last quarter were iPhones," Cook said. "In Japan and the UK, six of the top seven were iPhones. In a market as large as the smartphone market, people want some level of choice and they’re deciding which ones to buy. We feel fantastic particularly as it pertains to iPhone X."

Meanwhile, Apple sold 13.2 million iPads -- barely more than the 13.1 million iPads sold a year ago. Apple CFO Luca Maestri attributed the puny increase to new iPad users and iPad user loyalty.

Macs also saw a slight drop in sales. The company sold 5.1 million Macs compared to the 5.4 million in the same period last year.

Looking forward, Cook says he's extremely optimistic on HomePod and augmented reality.

On HomePod, Cook described its many use cases, beyond playing music. "You can also do things with HomePod like use it as a speakerphone. You can have Siri call for you. You can send messages. You can get an Uber or Lyft car."

He skirted around one analyst's question on whether HomePod was an Echo and Google Home competitor: "I think the use case, much like our phones will be broad base. Some will use it significantly for music. Others will use it significantly as a digital assistant."

On the topic of augmented reality, he reiterated how profound he thinks the platform is:

"I think AR has the ability to amplify human performance instead of isolating humans. I am a huge, huge believer in AR," Cook said. "We put a lot of energy in AR. We’re moving very fast. We’ve gone from ARKit 1.0 to 1.5 in just a matter of months. I couldn’t be happier with the rate and pace of developer community and how fast they’re developing things. I could not be happier with how things are going right now."

Cook stopped short on dishing out any details on expanding the AR ecosystem beyond the iPhone and iPad though. So, sorry, if you were hoping to hear something on the company's rumored AR glasses.