This would mark Apple's biggest iPhone refresh since the iPhone 6 was released in 2016, so it has the potential to trigger a big wave of upgrades and new purchases.
Profit surged 12 per cent to United States dollars 8.7 billion, and revenue rose per cent to USD 45.4 billion, with the California-based company selling 41 million iPhones in the fiscal third quarter to July 1. Apple is likely to introduce iPhone 8 in early September. Cook has reiterated several times that he hopes to double Apple's Services business by 2020 - it's already the company's second-largest business, second to iPhones.
It's a strong suggestion that the iPhone 8 will release in September as originally expected.
Apple's Services business, which includes iTunes and the App Store, continues to be a bright spot, and was its fastest growing by year-over-year change in revenue.
No doubt adding to Apple's smugness, analysts had forecasted a decline in sales, predicting that Apple would sell between 7 to 9.8 million tablets during the quarter. This was the big surprise in the report, even though iPad revenue is only about $5 billion, or 20% of iPhone sales.
Mac sales rose 6.7 percent, the third consecutive quarter of gains, while iPads avoided a fourth consecutive quarterly slide with 1.9 percent growth. But after the earnings release, it shot up 5.09 percent in after-hours trading to $157.69.
Apple said its gross profit margin would be between 37.5% and 38% in its fiscal fourth quarter, compared with 38% in the same quarter previous year. "Greater China revenue fell by 10% YoY in 3Q:FY17 but better than our down 15-20% estimate".
In a traditionally slow quarter, revenues rose from $42.4 billion (£32bn) to $45.4 billion (£34.3bn), a third of which came from outside the US. That's a faster growth rate than Apple has seen in some recent quarters.
Other products - including Apple TV, Apple Watch, and Beats products - generated $2.74 billion, up 23.3%. There are reports Apple could launch three iPhone models, with one expected to have a four-digit price tag.