Apple's reports lower-than-expected rise in Q3 profits

Apple made a net profit of $8.8bn (£5.7bn) in the three months ending in June, up 21% from a year earlier but lower than forecasts.

The consumer gadget and computer maker reported $35bn in sales, up from $28.6bn in 2011, BBC reports.

But sales of its iPod digital music player fell 10% while Mac computer sales flatlined, up just 2%.

It will pay shareholders a rare dividend of $2.65 per share on 16 August.

Apple - the world's most valuable company - sold 26 million iPhones. That is a rise of 28% but slower growth than many analysts had forecast.

By contrast, sales of Apple's tablet computer, the iPad, rose 84% from the same period last year.
Apple's forecast for sales in the fourth quarter - the three months ending in September - was still lower at $34bn, which disappointed investors.

Apple shares fell nearly 5% in after hours trading.