Sell-through was stronger, as the company reduced iPhone channel inventory by 3.3 million units.
Net profit rose to $US8.72 billion, from $US7.80 billion, or $1.42. As of late July, Apple was at risk of falling out of the top 5 smartphone vendors in China, according to data from Canalys. Further increase in earnings is expected as Apple continues to enjoy increasing demand for iPhones, iPads, and Mac.
The "Other" categories of products rose by 23% to $2.74 billion.
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The company said it sold 41.026 million iPhones in the quarter, up 2 percent from a year ago when it sold 40.4 million iPhones.
The news sent its stock surging more than 6% in after-hours trade.
He also said that Apple fought the United States government past year over unlocking an iPhone belonging to a dead terrorist because the legal circumstances were different.
Luca Maestri, Apple's chief financial officer, said Apple's App Store "was a major driver of this performance, and according to App Annie's latest report it continues to be by a wide margin the prefered destination for customer purchases, generating almost twice the revenue of Google Play".
Here's another story line we weren't necessarily expecting: the iPad is growing again.
Apple's Services revenue set a record with $7.3 billion in income, an increase of 22 percent from a year ago.
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Kimbrel struggled, thus blowing his 4th save of the year giving up 2 earned runs on 3 base hits and a walk in the top of the 9th. As his legs extended toward the sky and his face met the outfield fence, Austin Jackson was thinking about Torii Hunter.
Tim Cook, Apple chief executive, told analysts iPad sales to schools and other educational institutions had risen 32 per cent to 1m units.
Apple also said that for its current, fiscal fourth quarter, it expects revenue to be in a range of $49 billion to $52 billion.
If you look across the world, we had several markets in Asia, in Latin America, and the Middle East which grew more than 25 percent year on year.
One of the big worries for investors - and Apple fans, you'd imagine - is that concern that the next iPhone, due in September, could be delayed due to production issues.
Apple reported improved sales growth in its fiscal third quarter to June, with revenue up 7 percent to United States dollars 45.41 billion, at the top of its forecast range.
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