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Apple profits decline for first time in 10 years

But firm reports record second quarter revenue as iPhone and iPad sales increase

Apple has posted its first quarterly drop in profits in ten years.

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For its fiscal 2013 second quarter ended March 30, 2013, the iPhone maker made a net profit of $9.5 billion (£6.2b), down from $11.6 billion (£7.6b) a year earlier.

The company did manage to post record March quarter revenue of $43.6 billion (£28.6b), up from $39.2 billion (£25.7b) last year, as sales of its key products increased.

Apple sold 37.4 million iPhones in the quarter, up from 35.1 million, while iPad sales rose from 11.8 million to 19.5 million. It also said it shifted "just under" the four million Macs sold in the same quarter a year ago.

Apple CEO Tim Cook said: "We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad.

"Our teams are hard at work on some amazing new hardware, software, and services and we are very excited about the products in our pipeline."

Apple said it ended the quarter with a cash balance of $145 billion (£95b).

Cook also expressed frustration about some elements of the company's recent performance in statements reported by the BBC.

"Though we've achieved a credible scale and financial success, we acknowledge that our growth rate has slowed and our margins have decreased from the exceptionally high level we experienced in 2012," he said.

"The decline in Apple's stock price over the last couple of quarters has been very frustrating for all of us... but we'll continue to do what we do best. The most important objective for Apple will always be creating innovative products."

Additionally, Apple said it plans to buy back $60 billion in shares and raise its dividend to shareholders by 15 per cent, leading to a 5.5 per cent jump in its share price in after-hours trading on Wall Street.

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