Apple earnings top projections

SAN FRANCISCO - Apple's growth prospects look brighter as anticipation builds for the forthcoming release of the next iPhone, a model expected to cater to consumers yearning for a bigger screen.

The latest evidence of Apple's mounting momentum emerged Tuesday with the release of the company's fiscal third-quarter report.

Earnings topped analysts' projections for the period as Apple Inc. sold 35.2 million iPhones. That was a 13 percent increase from the same time last year, even though many people are believed to be holding off on new device purchases until the next version comes out this fall. The iPhone sales helped offset a decline in iPad sales, which fell for the second straight quarter compared with the same period last year.

"We have some things in the pipeline that we think people will really be excited about," Apple chief financial officer Luca Maestri said.

Apple earned $7.7 billion, or $1.28 per share, for the three months ending June 28. That represented a 12 percent increase from income of $6.9 billion, or $1.07 per share, at the same time last year. Revenue rose 6 percent from last year to $37.4 billion - about $600 million below analysts' forecasts.

If reports based on leaks from Apple suppliers prove accurate, the iPhone 6 will boast a screen of at least 4.7 inches compared with the 4-inch display that the company switched to in 2012. Some analysts also speculate Apple will simultaneously unveil an iPhone with a 5.5-inch screen.

An iPhone with a larger screen probably would unleash a flood of sales among Apple fans interested in a smartphone that would make it easier to read and see other features. A bigger-screen iPhone might also tempt consumers already accustomed to the larger screens on a variety of smartphones running on Google Inc.'s Android operating system.

Propelled by high hopes for the next iPhone and the potential release of a smart watch, Apple's stock has surged 18 percent this year. After closing at $94.72 Tuesday, the stock is just $6.01, or about 6 percent, away from setting a new high.

The chances of Apple's unveiling a high-tech watch as a complement to the iPhone and iPad looked even more likely Tuesday when Apple was granted a U.S. patent for a touchscreen device designed to be worn on wrists. Sketches attached to the filing with the U.S. Patent and Trademark Office indicated that Apple intends to call the device iTime.

Apple spokeswoman Kristin Huguet declined to comment on the filing or patent approval.