Today Apple announced its Q2 results, and sales of the iPhone continue to dominate revenue and earnings for the company.

Revenue for the quarter came in at $45.6B – a 4.7% increase year over year, and a down sequentially from the always strong holiday season.

Net profit came in at $10.2B for the quarter, resulting in Earnings per Share of $11.62 – beating the consensus of $10.41. This was an increase of 7.3% over Q2 last year.

iPhone is far and away the largest product at Apple, with unit sales of 43.7 million for the quarter. This is a 17% increase over the same time last year, and a 14% increase in revenue. iPhone sales accounted for 57% of Apple’s Q2 revenue. The large increase in iPhone sales can be at least partially attributed to increases in sales in both Japan and China, though revenue from the rest of the Asia Pacific region was down.

Software, Services, and App/Music store sales came in at $4.6B for the quarter – up both year over year (11%) and sequentially (4%).

Mac sales were up 5% year over year with 4.1 million Macs sold, but down from 4.8 million last quarter.

iPad sales were down 16% year over year, and 37% sequentially, tempering the increase in iPhone sales. Some of the drop was explained by channel inventory changes, but in the end Apple reports how many devices it sells to the channel every quarter so that is the number that matters. If there was a strong demand for the product, then it’s unlikely there would be a large number unsold in the channel to worry about.

Finally, iPod sales continued their decline with 2.761 million devices sold – down 51% year over year and 54% sequentially. iPod is no longer a billion dollar business for Apple, with only $461M in revenue from the once loved device.

Apple CEO Tim Cook also announced more changes to the Capital Return Program. From August 2012 to March 2014, Apple has given $66 billion back to shareholders through the program. As part of this program, Apple’s board has approved an increase in the share repurchasing program from $60B to $90B. On top of this, the quarterly dividend has increased by about 8%, and they have plans to increase the dividend annually going forward.

Finally, Apple announced a stock split of 7-1. Each Apple share at the close of business June 2, 2014 will receive six extra shares for each share held. Trading will begin again on June 9^th, 2014.

Overall, it was another solid quarter for Apple. iPhone sales keep providing them strong revenue, but it is slightly worrisome that the iPad sales have not continued at the same pace. There are likely many reasons for this including strong competition in the space, and people less likely to upgrade their iPads annually or semi-annually like the phone market. It’s obviously too early to call any trends here though, so we’ll have to wait and see how the numbers look in a few months.