Apple's profit beats estimates as iPhone sales surge
Shares of computer and smartphone maker Apple rose nearly 5% in after-hours trading after it reported better-than-expected profits for the third quarter.
It made $6.9bn (£4.5bn) profit for three months to June, thanks in part to good sales of its iPhone smartphone.
Apple said it sold 31.2 million iPhones, a record for the June quarter, compared to 26 million last year.
But profit was down 22% from the same period a year earlier as its profit margins shrank to 36.98% from 42.8%.
However, average sale prices were lower at $581, compared with $608 a year ago.
Its revenue was also better than expected, with the company earning $35.3bn, although that was barely above the $35bn of a year ago.
Analysts said the data, especially on iPhone sales, may help allay some fears of a slowdown in Apple's growth rate.
"The iPhone number should provide some comfort to investors who were worried about smartphone demand," said Shannon Cross of Cross Research.
"That's one of the reasons the stock is up. Expectations were not strong for this quarter."
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Apple has spent most of the past 10 years as the darling of consumers and investors.
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