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The world's largest technology company said Tuesday that profit fell 22 percent as gross margins slid below 37 percent from more than 42 percent in the year-ago quarter.

The iPhone's solid showing eased concerns that growing competition is hurting demand for Apple's top-selling product as the global smartphone market matures. Rival Samsung Electronics Co Ltd, which overtook Apple to become the world's largest smartphone maker in 2012, fueled those fears when it issued a disappointing earnings forecast earlier this month.

Apple's stock, which has fallen 20 percent since January, rose 5 percent to $437.94 in after-hours trade. It closed at $418.99 on Nasdaq.

"The iPhone number should provide some comfort to investors who were worried about smartphone demand. That's one of the reasons the stock is up. Expectations were not strong for this quarter," said Shannon Cross of Cross Research.

The company sold 31.2 million iPhones last quarter - far more than the estimated 26 million - and 14.6 million iPads.

Chief Financial Officer Peter Oppenheimer said in an interview that iPhone sales rose 51 percent in the United States from a year earlier, and 66 percent in Japan.

But revenue from greater China - an increasingly crucial market for the Silicon Valley giant as it strives for growth - dived 43 percent from the second quarter and 14 percent from the year-ago period.

Executives blamed China's slowing economy for the revenue decline but did not elaborate.

"China is a huge opportunity for Apple," Chief Executive Tim Cook said on a conference call. "I don't get discouraged over a 90-day kind of cycle."

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

The US-based technology giant, known for creating path-breaking communication devices, has reportedly been working to enhance the screen size of its iPhones and tablets.

Apple Inc. wants to bring tablets and iPhones with larger screen size. To make the upcoming iPhone 5S screen size bigger, the tech leader may have decided to delay the launch of the smartphone as it has been speculated that the iPhone 5S would come with a screen size of 4.3-inches. The screen size of Apple iPhone 5 is 4 inches.

The device was expected to be launched in September. Now,The closest item I could find with a complete price breakdown was the Wholesale Cheap Replacement Parts for iPhone 4. it may come in October owing the possible change in screen its screen size.

Despite the buzz in the markets, there is no official announcement in this regard. Rather, a spokesperson from the company, has, reportedly, refused to comment on the matter.

Given the fact that most of the rumours related to smartphones and upcoming gadgets generally turn true, we may see new iPhone in October with a bigger screen size.

Technology giant Apple's iPhone series has been extremely successful and it revolutionised the way people used smartphones. Apple is known for testing new designs, updating its existing gadgets and launching new products at regular intervals.
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