By Jonathan Davies

Apple has reported record profits in the third quarter as a huge iPhone sales.

In what chief executive Tim Cook described as "an amazing quarter", Apple posted profits of $10.7bn (£6.87bn) - a 38% increase on the same period last year. Revenues rose by a similar 33% to $49.6bn.

It comes after soaring demand for iPhone handsets during the three month period. Apple sold 47.5 million iPhones in the quarter; up 35% on a year ago. Sales of its Mac laptops were up 9% to 4.8 million.

iPad sales continued to slow down in the third quarter. Apple sold 10.9 million of the tablets, down 18% on last year. But sales from other products like the iPod and Beats headphones jumped $952m to $2.6bn.

Tim Cook said he did not want to reveal exact figures for the Apple Watch to avoid giving competitors inside information. However he said it has had a "great start". Meanwhile, chief finance officer Luca Maestri said revenues from the Apple Watch was "well over" the $952m rise seen in other products.

The figures have come as a huge surprise to the market. Apple's third quarter is typically its slowest as consumers put off buying new iPhones until new handsets are released in the autumn.

Despite the record profits, shares actually fell 6.7% in after-hours trading in New York. Analysts say Apple's fourth quarter forecasts were below expectations and its over reliance on the iPhone is concerning investors.