Apple Shares Drop After Earnings Report

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UPDATED: In its first quarterly earnings release since the death of Steve Jobs, investors aren't impressed with iPhone or iPad sales.

Shares of Apple plunged $27 in after-hours trading as the company reported characteristically big quarterly numbers though weaker than was expected, especially when it came to iPhone sales.

In its first earnings announcement since the death of co-founder and chairman Steve Jobs, Apple said profit rose 54 percent to $6.62 billion as revenue jumped 39 percent to $28.3 billion.

Apple sold 11.1 million iPads, almost triple what it sold a year ago, but analysts wanted about 400,000 more. Executives on a conference call noted that even with a flurry of competition in tablets, Apple has recently been responsible for three of every four of the devices sold.

Apple sold 6.6 million iPods, representing a 27 percent decline year-over-year. Iphone sales were 17.1 million in the quarter, a 21 percent increase but shy of the 18 million-20 million that analysts had projected.

Apple's per-share profit of $7.05 and its revenue also came in shy of analyst expectations

The stock was up fractionally during the regular session but sunk more than 6 percent after the closing bell.

At the start of a conference call, CEO Tim Cook called Jobs "a creative genius and an amazing human being," then he turned the call over to CFO Peter Oppenheimer to run through the numbers.

The sale of 4.9 million Mac computers set a record, and the iTunes store boasted $1.5 billion in sales during the fiscal fourth quarter while the Apple retail stores took in $3.6 billion.

As is customary, one analyst asked if Apple intended to use any of its $82 billion in cash and investments to pay a dividend or buy back stock. Is Apple's failure to spend that money "kind of a philosophical white flag that you aren't able to create value through product innovation?" the analyst asked.

"I think anyone looking at us and the track record that we've got would not come to any conclusion that we're waving a white flag on innovation," Cook said.