Strong iPhone sales buoy Apple's Q3, shares climb

The Apple logo hangs in front of an Apple store on July 23, 2013, in New York City. Apple Inc's quarterly revenue and earnings beat Wall Street's targets on surprisingly strong sales of its flagship iPhone, sending its shares up 4 per cent. -- PHOTO:
The Apple logo hangs in front of an Apple store on July 23, 2013, in New York City. Apple Inc's quarterly revenue and earnings beat Wall Street's targets on surprisingly strong sales of its flagship iPhone, sending its shares up 4 per cent. -- PHOTO: AFP

SAN FRANCISCO (REUTERS) - Apple Inc's quarterly revenue and earnings beat Wall Street's targets on surprisingly strong sales of its flagship iPhone, sending its shares up 4 per cent.

But profit slid 22 per cent in its fiscal third quarter as margins were pressured by growing competition and a wider array of lower-end devices such as older smartphones.

Apple earned US$6.9 billion (S$8.7 billion), or US$7.47 a share, on revenue of US$35.3 billion. That compared with a profit of US$8.8 billion, or US$9.32 a share, on revenue of about US$35 billion in the year-ago quarter.

Wall Street's average forecast was for revenue of US$35.02 billion and earnings per share of US$7.32, according to Thomson Reuters I/B/E/S.