The buyback decision helped the company’s shares to rise by 2 percent to close at $406 on very same day. But they fell slightly in after-hours trading as investors digested the quarterly earnings news and Apple's plan to return cash to shareholders.

The blockbuster Apple product like iPhone, grew only 3 percent to $22.96 billion in the second quarter. The Company said that its products like the iPad Mini, iPhone 4 (which is targeted towards developing economies) have lower profit margins than iPad or the new iPhone.

One of the biggest challenges that face Apple is whether it can innovate its way out of its recent decline by delivering a breakthrough product. Company’s most awaited products like Apple TV, a smartwatch, iPad mini with retina display and couple of others may propel Apple to profits.   

Tim Cook, Apple CEO, said in a conference call with analysts that the decline in the stock price has been "very frustrating to all of us", but that Apple remains strong. "Our teams are hard at work on some amazing new hardware, software and services that we can't wait to introduce this fall and throughout 2014," Cook said. He even dropped a hint about "exciting new product categories" that Apple could enter, suggesting the company is preparing a move into a new market, as reported by New York Times.

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