Apple reported earnings that edged past Wall Street's estimates on Wednesday but its revenue fell slightly short of forecasts during the crucial holiday quarter.
After the earnings announcement, the company's shares fell in extended-hours trading. (Click here to get the latest quotes for Apple after the closing bell.)
For the fiscal first quarter, it posted net income of $13.07 billion, or $13.81 a diluted share, compared to $13.06 billion, or $13.87 a share, a year earlier. This is the first time in years that Apple didn't post a double-digit earnings increase.
Revenue increased 18 percent to $54.51 billion from $46.33 billion a year ago.
"The revenue number is dismal as far as what the expectations were," said Jeff Sica president and chief investment officer of SICA Wealth Management. But he added that it's an "incredible number" on its own and Apple has "fallen victim to the curse of high expectations."
Analysts had expected the company to report earnings of $13.47 a share on $54.73 billion in revenue, according to a consensus estimate from Thomson Reuters.
Apple sold 47.8 million iPhones during the period, up from 37 million a year ago; 22.9 million iPads, up from 15.4 million a year ago; 4.1 million Macs, down from 5.2 million a year ago; 12.7 million iPods, down from 15.4 million a year ago.
Tim Cook, the company's CEO, said during the earnings call that the iPhone 4 was in constraint for the entire quarter but sales remained strong. IMac supplies were "significantly constrained" and inventory was at three to four weeks, below the target of four to five weeks, he added.