Apple has posted a third straight quarter of declining iPhone sales. But the tech goliath is still forecasting higher-than-expected revenues for the critical upcoming holiday shopping season.

Apple's revenues fell 9 percent during the fiscal fourth quarter, below expectations. It was the first drop since 2001, highlighting the slowdown in the smartphone market and competition, particularly from Chinese rivals. Apple's sales in China fell by almost 30 percent in the fiscal fourth quarter.

Still, Apple remains optimistic, saying improved sales from China are around the corner while sales in India have only scratched the surface. Apple CFO Luca Maestri said new high demand for the iPhone 7 and 7 plus make the company confident about results in the coming quarter.