Apple released its quarterly results yesterday, beating Wall Street analysts predictions and disclosing a profit rise of 38% to $10.7bn.

Apple cited soaring demand for iPhones leading the figures; 47.5 million iPhones were sold in the quarter to 27 June, up 35% on a year ago. Mac computer sales also rose 9% to 4.8 million.

Chief executive Tim Cook called “an amazing quarter”.

However, lower revenue forecasts for the fourth quarter meant share price took a hit and despite the strong results, shares fell 6.7%, or $8.85, to $121.89 in after-market trading in New York.

The disappointment over the lack of iWatch results may also have caused the share price to drop; Apple refused to disclose sales from the iWatch in order to prevent competitors gaining inside information. However, chief executive Tim Cook suggested it was a $1bn business and said he believed the possibilities for the watch were “enormous”.

Apple said that revenue from “other products”- which includes the watch – came to $2.6bn – about $952m higher than the previous quarter.

Demand for its iPad tablets were down 18%, due to facing stiff competition from other brands.

Apple also did well in the China market, despite fears of cheaper competition and a saturated smartphone market.