Apple misses forecasts despite big iPad sales

AS VEGAS (CNNMoney) -- Apple reported sales Tuesday that rose nearly 24% from a year ago and a profit that soared 21%. In case you were wondering, that's what a bad quarter for Apple looks like.

The world's most valuable company said net income rose to $8.8 billion, or $9.32 per share, in its fiscal third quarter. Analysts polled by Thomson Reuters forecasted earnings of $10.36 per share.

Sales for the Cupertino, Calif.-based company rose to $35 billion, falling well short of analysts' forecasts of $37.2 billion.

The good news: Apple sold a record 17 million iPads. The launch of the third generation of the tablet, which debuted in the United States in March and in most other countries last quarter, boosted demand.Apple's decision to continue selling the very similar iPad 2 at a $100 discount also helped boost unit sales. The company said the reduced price iPad is selling particularly well in schools, where twice as many iPads were sold as Macs.

Yet analysts were concerned that the introduction of the lower price point is hurting revenue. Average revenue per iPad fell to $538 last quarter from $653 a year ago.

Delays in getting the iPad on store shelves in China didn't help either.