Apple fails to wow, iPad sales disappoint

Apple delivered lacklustre quarterly results and iPad sales fell short of Wall Street targets, sending the company's shares down.

Apple's fiscal fourth quarter revenue rose to $US36 billion ($A34.7bn), roughly in line with the average analyst estimate of $US35.8 billion, according to Thomson Reuters I/B/E/S, but up 27 percent from revenue in the previous corresponding quarter.

It reported profit of $US8.22 billion, up from $US6.62 billion a year earlier. 

Apple shipped 26.9 million iPhones, somewhat higher than the 25 million to 26 million that Wall Street analysts had predicted, and up 58 per cent from a year earlier. Sales of the iPad came in at 14 million in the fiscal fourth quarter, well below lowered forecasts for the tablet, but up 26 percent year-on-year.

"We were happy with the 14 million iPad sales in the quarter. It exceeded our expectations," Apple CFO Peter Oppenheimer said in an interview. "But as the summer went on, the rumours were pretty rampant about the iPhone and iPad."

Apple only had nine selling days of the new iPhone 5 in its fiscal fourth quarter, which means that all eyes are on the current holiday quarter.

Apple heads into the quarter after having refreshed almost all of its product lines, including an upgraded, full-sized iPad. The December quarter will show how well consumers respond to Apple's latest gamble - the new, smaller iPad mini that will goes on sale November 2. 

For the December quarter, Apple forecast revenue of $US52 billion, below the average estimate of $US55 billion, according to Thomson Reuters I/B/E/S.

Apple shares dropped $US7.29, or 1.2 percent, to $US609.54 immediately following the announcement.