Apple Inc. (AAPL) announced its quarterly results on Tuesday. The company reported earnings of $7.05 per share for the quarter and revenue for the same period was up 39.0 per cent on a year-over-year basis.

Apple stunned Wall Street by missing financial expectations for the first time in years. The company blamed rumors over the supposed launch of the iPhone 5 -- and subsequent disappointment for many consumers -- for hurting demand in the September quarter.

Apple shares fell 7 per cent in extended trading Wednesday, wiping some $27 billion off the value of the world's largest technology company.

The California-based organization said it sold 17.07 million iPhones in the fiscal fourth quarter ended September 24 - well short of the 20 million roughly forecast by analysts. The iPhone is Apple's flagship product, yielding some 40 per cent of annual sales.

Revenue rose 39 per cent to $28.27 billion, lower than the average analyst estimate of $29.69 billion, according to Thomson Reuters. It was the first time Apple missed revenue expectations since the fiscal fourth quarter of 2008.

Net profit was $6.62 billion, or $7.05 a share. That too fell shy of expectations, which were for earnings of $7.39 per share. The last time Apple missed earnings-per-share estimates was in the first quarter of 2001, according to Thomson Reuters.

Apple executives said consumers had postponed purchase decisions until the crucial holiday quarter because of speculation that a new phone was on the way. Apple unveiled the iPhone 4S in early October and it hit stores last Friday.

Tim Cook started his first earnings conference call as CEO by honoring Apple's co-founder Steve Jobs, who died Oct. 5 after a seven-year-long battle against pancreatic cancer.

He said he was very confident of posting record iPhone sales in the current quarter. The company has moved 4 million iPhone 4S units, which is more than double the device's predecessor, in its first three days, despite lukewarm reviews.

Apple shares fell to $394.78 in after-hours trading, after closing at $422.24 on the NASDAQ.