Huge iPhone sales drive Apple 2Q revenue

Apple Inc., the world's most valuable company, trumped skeptics once again by reporting blowout iPhone sales.

Apple says it sold 35 million iPhones in the January-to-March quarter, almost twice as many as it sold in the same quarter a year ago and above analyst expectations.

Apple's stock was down 2 percent at the close of regular trading, as investors believed phone companies had reined in iPhone sales. In extended trading, the stock rallied $38.34, or 6.8 percent, to $598.62.

Net income in the company's fiscal second quarter was $11.6 billion, or $12.30 per share. That was nearly double the net income of $6 billion, or $6.40 per share, a year ago. Analysts were expecting earnings of $10.07 per share.

Revenue was $39.2 billion, up 59 percent from a year ago. Analysts expected $37 billion.

Sales of iPads came in below analyst expectations, at 11.8 million units. But that was still 2½ times as many as it sold in the same quarter a year ago. Apple launched a new iPad model in the quarter.

Mac sales were also slightly below expectations, at 4 million. That was up 7 percent from last year.