Apple's reports lower-than-expected increase in Q3 profits

  • Apple made a net profit of $8.8 billion in the three months ending June, up 21 percent from a year earlier but lower than forecasts.

    The world's most valuable company reported $35 billion in sales, up from $28.6 billion in 2011.

    However, sales of its iPod digital music player dropped 10 percent while Mac computer sales were up just 2 percent.

    Apple sold 26 million iPhones, a rise of 28 percent but slower than what many analysts had predicted.

    In contrast, sales of its iPad tablet computer rose 84 percent from the same period last year.

    Apple's forecast for sales in the three months ending in September is slightly lower than this quarter at $34 billion.