iPhone sales rose 7 percent from the year-ago quarter to nearly 7.4 million units. That compares to a little less than 6.9 million iPhones in the September 2008 quarter--a three-month period that saw Apple roll out the iPhone 3G in a number of markets around the globe.

For the quarter, Apple reported recognized revenue from iPhone handset sales of $2.3 billion. That's a 185-percent jump from $806 million in last year's fourth quarter.

Apple executives pointed to several events that could continue the iPhone's momentum in the coming quarter. China Unicom will this month. "This very large market offers a great opportunity to expand sales," Oppenheimer said.

New carriers will be able to serve the iPhone in both the U.K. and Canada. That also opens up the iPhone to new customers in those countries.

Apple believes its App Store of mobile software from third-party developers gives it an edge over rival smartphones. The 85,000 apps in the store is "a country mile more than anyone else," Cook said, claiming that Apple's smartphone competitors are trying to match the original iPhone of 2007, not where Apple is now. "We feel good about competing against anyone," he added.