Apple shares tumbled on Wednesday after the company posted disappointing growth in the fourth quarter of last year.
Apple made a net profit of US$13.08 billion from October to December. Analysts had predicted Apple would post its first drop in quarterly net profit in 10 years in the fourth quarter of last year, but actual results turned out slightly better than the $13.06 billion it made in the same period of 2011.
But sales were lower that market expectations of $55 billion despite an 18 percent rise to $54.5 billion.
Apple shares plunged more than 10 percent in after-hours trading.
Apple showed top-line growth after selling 47.8 million iPhones and 22.9 million iPads, but costs also rose as competition increased, according to analysts. Apple provided first-quarter performance guidance figures of $41-43 billion in sales, which was below analysts' projections of $45.4 billion compiled by Thomson Reuters.
Apple CEO Tim Cook scotched reports that his company is developing a large-screen iPhone. "We put a lot of thought into screen sizes and we think we picked the right one," Cook said.
He also denied rumors that Apple reduced order volume for parts, saying the company's supply structure is complicated and the number of suppliers varies.