In the recent quarter, Wall Street analysts estimated Apple to sell 20 million or more iPhones. On Tuesday, Apple only counted 17 million sold by the end of the quarter.

Although sales are up from a year ago, Apple's shares are not doing the best either. They've been on the rise, but recently dropped nearly 6.5 percent following Tuesday's results.

iPhone sales lagged at the end of the quarter as speculation continued about Apple releasing the iPhone 5. However, current CEO Tim Cook is staying positive about the 4S bringing numbers back up. In past quarters, it's been demonstrated that iPhone sales bring in more than one-third of Apple's overall revenue.

iOS 5 usage may be climbing steadily, powering more than a third of iOS-based devices, but Apple still seems to be a step behind Android on the software end. Google's Android OS is powering 54 percent of all smartphones sold in the U.S. right now. Apple follows at 27 percent.

Apple may have missed Wall Street's target, but some analysts are convinced this is not a major concern in the long run. With Christmas right down the line, Apple is seemingly confident that sales will hit another record high with the iPhone 4S and iPads.

With the passing of co-founder Steve Jobs earlier this month, investors, analysts, and the entire industry watch Apple closely as they wonder whether the company can continue being successful without its visionary.