Apple is still selling a ton of iPhones, but dividends, free software, and complex devices are cutting into the company’s bottom line. CEO Tim Cook is hoping it’ll be an iPad Christmas.

Apple’s revenues continue to rise, but the company’s profits are falling as its margins shrink.

In a call that alternated between statistics and cheerleading, Apple reported a record-breaking $43.6 billion in second-quarter revenues, albeit with declining profits — a mere $9.5 billion.

Citing constrained iMac availability and a shorter reporting quarter, Apple managed to come within one percent of last year’s profit-per-share mark, as well as bring in record revenues of more than $54 billion. For many analysts, this was not enough.