Apple's Q3 net rises 38% to $10.7 bn, but market disappointed

US tech giant Apple Inc has reported a 38-per cent rise in its quarterly net profit at $10.7 billion for the three months ended 30 June 2015, helped by a 35 per cent increase in its iPhone sales to more than 47.5 million during the quarter.

The California-based company also saw its cash and investments break past $200 billion for the first time as its ability to create wealth continued amidst lacklustre performance by tech majors like Microsoft.

The company said net income rose to $10.68 billion, or $1.85 per share, from $7.75 billion, or $1.28 per share, a year earlier.

Revenue rose 32.5 per cent to $49.61 billion from a year earlier, beating Wall Street expectations of $49.43 billion.

Apple's board of directors has declared a cash dividend of $0.52 per cent of the company's stock, payable on 13 August.

Investors, however, weren't impressed as Apple failed to cash in on its iWatch, the way it did with its iPads and iPhones.

Apple's shares were down more than 7 per cent at $121 in after-hours trading on Tuesday despite reporting an adjusted quarterly profit of $1.85 a share, beating Wall Street expectations of $1.81. Apple, however, missed the $1.86 per share that investors had hoped for.

Apple' outlook for the July-September quarter of $49-$51 billion also fell short of analysts' expectations.

The company reported cash of $15.3 billion, short-term investments of $19.4 billion and long-term investments of $168.1 billion.

Apple is now sitting on cash and investments of $202.8 billion as cash balances kept piling.

The company's profit has shot up more than 3,500 per cent over the past decade in a practically unprecedented wealth-creating engine.

Consumers have so far been willing to pay steep premiums for products carrying the Apple tag. However, investors fear, its iWatch has missed to jell well with the market and consumer interest.

Apple Inc designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications.