Apple has announced record iPhone sales in its first quarter report, selling 74 million units and cementing the decision to go for 4.7 and 5.5-inch devices.

The 74 million sales surpassed most analyst and investor expectations that averaged around 60 million units. The news sent Apple's share price to US$115.40 in after hours trading.

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Apple revenue is at an all time high, as well, with US$74 billion in Q1 revenue and US$18.4 billion in net profit. Apple has US$178 billion in cash and securities, enough to acquire almost any company in the world.

iPhone sales are incredible in comparison to last year when Apple sold 23.5 million units. China is the big reason why iPhone sales have massively increased, with a reported 30 million sales in the region alone.

This isn't the only reason Apple is seeing more adoption than previous years due to the new size options in places like South Korea, Taiwan and even Western Europe,.

As noted by Macrumors (graph above), iPad sales are still down and Mac sales are surprisingly continuing to grow, but the real winner is the iPhone. iPod sales failed to contribute even one percent of Apple's total revenue.

Services are little bit of a worrisome area, not that Apple needs to focus on software or services to maintain profitability. Apple Pay didn't hit 0.01 percent of the total revenue, and iTunes continues to decline as more people move over to Spotify.

Beats Music might be the deterrent for Spotify's growth, but unless Apple tackles key issues Spotify failed to address, it might end up in the same boat as iTunes Radio.

Apple's CEO Tim Cook has announced the Apple Watch will come to stores sometime in April, finally giving a release date for the wearable.

TagsiPhone 6 Plus, iPhone sales