Apple profit soars but misses high expectations

Apple reported Tuesday that its net profit in the recently-ended quarter soared to $6.62 billion as sales of iPad tablet computers nearly tripled. The iconic California company said it had a record-high September quarter, taking in revenue of $28.27 billion and selling 11.12 million iPads. The enviable earnings didn't measure up to high expectations Wall Street had set for Apple and the company stock price slid nearly five percent to $401.28 in after-hours trading. "We are thrilled with the very strong finish of an outstanding fiscal 2011, growing annual revenue to $108 billion and growing earnings to $26 billion," said Apple chief executive Tim Cook. "Customer response to iPhone 4S has been fantastic, we have strong momentum going into the holiday season, and we remain really enthusiastic about our product pipeline." Apple reported that it sold 11.12 million iPads in the quarter in a 166 percent jump from the same period last year. The company saw iPhone sales rise to 17.07 million and Macintosh computer sales climb to 4.89 million in 26 and 21 percent increases, respectively, from the third fiscal quarter in 2010. Analysts had expected iPhone sales to be stronger. Sales of iPod MP3 players ebbed 27 percent to 6.62 million in a predictable decline as people increasingly rely on smartphones for video and music.