Apple earnings lower than expected

Apple Inc. reported quarterly earnings today that were 24 per cent higher than a year earlier, but below analysts’ estimates.

The iPhone maker earned net income of $8.2 billion US, or $8.67 per share, on revenue of $36 billion.

In the same quarter in 2011, it earned $6.6 billion, or $7.05 per share.

Analysts had expected earnings of $8.75 a share on revenue of $35.8 billion.

The company sold 14 million iPads, as customers put off buying old versions ahead of the release of the iPad mini in this quarter.

Analysts surveyed by Bloomberg had expected sales of 15.3 million iPads.

Apple, the world's largest company by market value, yesterday unveiled a new iPad Mini, aimed directly at competition from Amazon's Kindle Fire and Google's Nexus tablets. Shipments start next week.

Sales were also hurt by slowing growth in China. Apple's sales in China more than doubled in fiscal 2010 and in 2011. Growth in the July-September quarter was also slow in economically troubled Europe.

Apple says it expects to earn $11.75 a share in the current quarter on revenue of $52 billion.

Analysts had been calling for net income per share of $15.41 on $55 billion in revenue.

In after-hours trading, the iPhone maker’s stock fell more than $12, or about two per cent, to dip below $600 US for the first time since July 30, before recovering some of that to trade at about $603.

Apple sold 26.9 million iPhones in the quarter, at the high end of expectations.