Tim Cook: iPhones that will drive people to upgrade are on their way

Apple CEO says fears over company's future are a 'huge overreaction' and claims in a few years the Apple Watch will be viewed as an overnight success

Apple's chief executive, Tim Cook, has attempted to assuage fears over the company's fall in earnings, saying that the dip in stock price was a "huge overreaction" and that forthcoming iPhones will make people look back and ask "how did I live without this?"

Cook described the 26% year-on-year drop in revenues Apple suffered last quarter and the trouble in China which caused the billionaire investor Carl Icahn to sell his entire stake in the company as "short-term turbulence".