Apple profits drop despite iPhone sales boost

<p>Apple has seen its profits fall.</p>

Apple has reported a fall in its profits for the latest quarter of its financial year, despite rising sales for its flagship smartphone, the iPhone.

The company revealed that it made a fourth quarter profit of $7.5 billion (£4.6 billion), the third quarter in a row profits have been down.

Despite iPhone sales growing 26 per cent to 33.8 million, lower margins meant Apple was not able to record higher profits, though its figures beat analysts' expectations.

Evan Niu of the financial website The Motley Fool explained many people are now waiting for the next "game-changer" device to be launched by Apple.

"Overall, this is a transitional quarter with the new iPads and iPhones coming out. This coming quarter will be the real test," he said.

Apple recently unveiled two new smartphones – the iPhone 5S and the iPhone 5C – as well as a new, thinner iPad.

Stocks in the company are slightly down in pre-market trading today (October 29th) on the back of the fall in the firm's profits.

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