Apple's results failed to meet expectations for the first time since 2003.
Revenue at the world's biggest company was $35 billion, less than the expected $37.7 billion. The fall is due largely to lower than expected sales of its iPhone and saw shares fall by 6%.
The company sold 26 million iPhones, in the fiscal third quarter, less than the expected 28.5 million.
Despite this, the company recorded both revenue and net income increases of 20%.
The company sold 17 million iPads between April and June, with consumers buying less expensive versions of the key products.
Apple's results failed to meet expectations for the first time since 2003.
Sales in China, which have been a growth engine for the company, also declined compared to the previous quarter.
CEO Tim Cook said that was because the iPhone 4S went on sale in China during the quarter that ended in March, and the company stocked inventories in the country.
Mr Cook is known as an efficient manager of production and supply and took over after founder and CEO Steve Jobs, who died in October.
He said he did not see any effect of the economic slowdown in China.
Troubles in Europe were evident, however, with sales to the continent grew just 16%.
Mr Cook also blamed the tepid iPhone sales, up 28% from a year ago, but down from the previous quarter, on anticipation building for the next iPhone model.
With its market value of $539 billion, Apple is by far the world's largest company.
