iPhone sales reached an all-time high in the last three months of 2016, according to Apple's latest financial results.

Chief executive Tim Cook said the firm sold 78.3m iPhones in the three months up to December 31 and also set revenue records for Mac and Apple Watch, resulting in a record quarterly revenue of $78.4bn (£62.3bn).

This is an 3% increase on the $75.9bn (£60.3bn) in the same quarter the previous year and saw Apple return to growth after a drop in sales.

Mr Cook said: 'We're thrilled to report that our holiday quarter results generated Apple's highest quarterly revenue ever, and broke multiple records along the way.

'We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac and Apple Watch.

'Revenue from Services grew strongly over last year, led by record customer activity on the App Store, and we are very excited about the products in our pipeline.'

Apple's latest smartphone, the iPhone 7, went on sale in September, and the latest results offer the first insight into consumer response.

There was also a notable increase in iPad sales – Apple's tablet computer which had seen declining sales in recent years – with the number jumping to more than 13m compared with around 9.3m in the previous quarter.

Apple is expected to reveal the next version of the iPhone – which marks its 10th anniversary this year – in September.