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Record iPhone sales lift Apple despite profit slump

US tech giant Apple has beaten Wall Street expectations for sales, causing the stock to surge in after-hours trading. However, a slump in second-quarter profit shows Apple desperately needs new innovative products.

Apple's total revenue in the second quarter of 2013 came in at $35.3 billion (26.8 billion euros) - some $300 million more than in the same quarter a year ago, the US technology firm reported Tuesday.

However, quarterly profit was down by 22 percent at $6.9 billion, compared with $8.8 billion in the second quarter of 2012.

The profit slump came in spite of record quarterly sales of iPhones, 31.2 million of which Apple shipped to customers. Sales of Apple iPads, however, were disappointing at 14.6 million devices compared to over 17 million sold in the same period a year ago.

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In a conference call, Apple Chief Executive Tim Cook told analysts that iPhone sales had been boosted by strong adoption among business and government users, which had partly offset a 4 percent drop in China.

"I feel really good about where we are," said Cook.

The Apple CEO also said that the company was "laser-focused" and working hard on some amazing new products that would be introduced later this year and across 2014.

There is mounting speculation that Apple will unveil an innovative wrist computer called iWatch, as well as an improved television set and a lower-priced iPhone for emerging markets such as China.

In the past year, Apple has been losing market share in smartphones and tablet PCs, mainly to companies using Google's Android operating system.

On Tuesday, Apple forecast revenue in the current quarter to come in between $34 billion and $37 billion. The news lifted the company's stock in after-hour trading at the Wall Street, rising by about 3 percent to around $434 a share.

However, Apple shares are still way off their last year's high of $700 amid concerns that the company might not be able to remain at the cutting edge of innovative technologies.

uhe/kms (AFP, AP, dpa)

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