Shares of computer and smartphone maker Apple rose nearly five per cent in after-hours trading after it reported better-than-expected profits for the third quarter.
The British Broadcasting Corporation reported that it made $6.9bn profit in the 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 per cent from the same period a year earlier as its profit margins shrank to 36.98 per cent from 42.8 per cent.
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.”
One of the brakes on the robust pace of growth that Apple has enjoyed in recent years has been the growing popularity of rivals such as Samsung – which has now become the world’s biggest mobile phone maker – as well as the launch of low-cost smartphone by Chinese manufacturers.