The world’s largest technology company, Apple Inc’s, said on Tuesday that profit fell 22% as gross margins slid below 37% from more than 42% in the year-ago quarter.
The quarterly data showed iPad sales disappointing however at 14.6 million compared with 17 million in the same period a year ago.
“The iPhone number should provide some comfort to investors who were worried about smartphone demand. That’s one of the reasons the stock is up. Expectations were not strong for this quarter,” said Shannon Cross of Cross Research.
Analysts and observers expect Apple to introduce a cheaper “low-end” iPhone in the autumn, and possibly another as yet unknown product in the wearable computing field within the next 12 months to provide a fresh boost to its flagging portfolio.
Apple is expected to roll out smartphones and tablets in the coming months with bigger screens in a move analysts say is an attempt to catch up with a trend set by its major rival Samsung.