David Paul Morris/Bloomberg

Apple's stock took a huge hit after the company reported lower than expected numbers for its revenue and iPhone shipments -- as well as a disappointing outlook for its current quarter.

In after-hours trading, Apple shares -- which are among the most widely held in America -- sank about 7 percent on the news, after closing down 1 percent in regular trading.

The market reaction was unusual for Apple investors who have grown accustomed to other-worldly results from the tech giant, followed by jumps in the stock price.

For any other company, Apple's quarterly results would be considered impressive. It reported $49.6 billion in revenue with $10.7 billion in profit, and said it sold 47.3 million iPhones. That still puts the company up 35 percent in iPhone sales from the previous year -- a record for this particular quarter. Still that was not enough to meet the bullish expectations of analysts who had predicted the company would sell roughly 50 million iPhones, and report around $50 billion in revenue.

"It wasn't even a bad number," Gene Munster, an analyst for Piper Jaffray, said about the iPhone sales. But, he said, it still feel short of where investors thought it would be. "Expectations ran up over the last few weeks on the phone, and Apple fell short of those expectations."

Apple earnings came in better than predicted this quarter, but the stock dropped after the results were released in part because of a disappointing rate of growth in iPhone sales. (Reuters)

Munster said that those monitoring the iPhone should feel optimistic that the company reported that it saw the highest number of "switchers" -- people moving from Android phones to the iPhone -- than it's ever measured.

"They're gaining share," he said. "Those are magical words for investors."

As for the company's prediction for revenue in the next quarter -- between $49 billion and $50 billion in revenue -- Munster said that sounded about right to him.

"The guidance was fine," he said. "They gave a range with a midpoint that's slightly below where the Street is for September. But with Apple, you always think about the high end [of the estimate]. And that's about in line with expectations."

As for other parts of the Apple balance sheet, iPad sales continued to slow with 10.9 million of the tablets sold, an 18 percent drop from the previous year. Mac sales, however, were up 5 percent to 4.7 million units.

Apple also set an all-time quarterly record with sales from "services" such as the App Store, which made about $5 billion. Apple chief executive Tim Cook said that Apple Music, the company's new streaming music service, had seen "millions and millions" of customers sign up for the free three-month trial period.

Apple did not break out sales of its Apple Watch, which falls into the same reporting category as the iPod and the Apple TV on the balance sheet -- a category called "Other." Analysts have estimated that the company sold roughly 2 million of its latest device, and they raised concerns over whether the device ultimately would be a disappointment after a long period of hype.

Cook offered a few extra details about the Watch, such as the tidbit that the device's most popular non-Apple apps include Twitter and the calling and messaging apps WeChat and Line. That makes sense, given how small the screen is. He also said that 94 percent of Watch owners wear the device every day.

Chief financial officer Luca Maestri said the Apple Watch accounted for "well over 100 percent of the growth of the category, and more than offset the decline of the iPod." Revenue from the "other" quarter grew to $2.6 billion from the $1.6 billion reported last quarter, before Watch sales were included.

Cook said that, contrary to reports of a sales slump, Apple sold more Watches in June than it did in April or May.