A staff of a China Mobile shop explains a function of the iPhone 5s to a customer in Beijing January 17, 2014. [Photo/Agencies]

Tapering

Apple iPhone sales tail off in the quarters before a new smartphone launch, as potential buyers hold off. Maestri said the company had taken the usual lull into account in its projections for the September quarter.

Despite a surprisingly robust Chinese market, Apple continues to struggle in the more saturated, developed regions of the United States and Europe, its two largest markets.

It forecast revenue of $37 billion to $40 billion this quarter, weak compared with Wall Street's outlook for $40 billion or more. But whether Apple can again produce a revolutionary new product, something it has not done since the iPad in 2010, remains the central question for investors.

Many expect Apple to make a play for the wearable device market with a smart watch, dubbed iWatch.

Analysts also expect the company to introduce two iPhone versions this fall, including a 5.5-inch model that thrusts Apple into the market for larger-sized phones that rival Samsung helped popularize.

The iPhone maker, which derives most of its business from the high-end device, reported sales of $37.4 billion in its fiscal third quarter ended June, falling short of Wall Street's expectations for about $38 billion.

Sales of iPads, which like smartphones are coming under growing pressure from Android rivals, at 13.3 million fell a little short of analysts' projections for more than 14 million.

Gross margin, however, was better than expected at 39.4 percent, up from 36.9 percent a year ago, primarily due to cheaper product costs.

Net income jumped 12.2 percent to $7.75 billion, or $1.28 per share. That beat expectations for $1.23 and was its best quarterly growth in EPS in seven quarters.

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