Apple Grows Profits on Strong iPhone, Mac Sales; iPad Sales Drag

Apple reported a ho-hum third quarter with revenue a touch below estimates while bottom-line growth exceeded expectations. The iPhone maker reported profits of $1.28 a share, $0.05 cents higher than analyst consensus and up around 20% year over year. Meanwhile, revenue of $37.4 billion was 6% higher year over year but fell around $500 million short of estimates. Breaking it down by category, Apple sold just over 35 million iPhones (inline with estimates), a little north of 13 million iPads (below estimates), and 4.4 million Macs (above estimates). For its fourth quarter ended September, the company expects sales between $37 billion and $40 billion.