Some of the bloom may be coming off of Apple?s blossom, with the company?s fiscal third quarter results disappointing on several fronts. While the numbers were up from the same period a year ago, they reflect a slowdown in growth this year.

The slowdown was not unexpected, with analysts predicting consumers would hold off on buying a new iPhone in anticipation of Apple?s next-generation smartphone, which could launch in the fall. Apple CEO Tim Cook blamed the slower growth on poor results in Europe.

?The U.S. was very strong, running at 47 percent and Japan was strong at 45 percent,? Mr. Cook said during a conference call with analysts to discuss the results. ?The geography that did not perform well was Europe.

?It was essentially flat, year over year, that really hampered our total results,? he said.

26 million iPhones sold
Apple, Cupertino, CA, posted quarterly revenue of $35 billion for its fiscal third quarter ended June 30, compared with $28.6 billion during the same period a year ago. International sales accounted for 62 percent of the quarter's revenue.

Apple posted a net profit of $8.8 billion, or $9.32 per diluted share for the third quarter, compared with a net profit of $7.3 billion, or $7.79 per diluted share, in the same period a year ago.

Apple sold 26 million iPhones in the third quarter, representing 28 percent unit growth over the year-ago quarter. IPad unit sales were up 84 percent for a total of 17 million iPads sold.

The numbers were down compared with the second quarter, when Apple posted quarterly revenue of $39.2 billion and quarterly net profit of $11.6 billion.

During the second quarter, Apple sold 35.1 million iPhones in the second quarter, an 88 percent unit growth over the year-ago quarter, and 11.8 million iPads, a 151 percent unit increase from the previous year.

In the third quarter, Apple reported revenue for iPhone handsets and accessories totaled $16.2 billion, up 22 percent from a year ago while revenue from the iPad totaled $9.2 billion, up 52 percent from a year ago.

Competitive advantage intact
However, despite a slower third quarter, Apple remains a mobile powerhouse with significant potential for future growth.

?In spite of the average iPhone portfolio being more than a year old, iPhones have been selling like hot cakes and global demand for iPhone has been on rise since Q4 2011,? said Neil Shah, senior analyst for the global wireless practice at Strategy Analytics, Newton, MA.

?For example, in markets such as the U.S., the Q2 2012 results of top two carriers AT&T and Verizon depicts that iPhone still accounts to more than 60 percent of the total smartphone activations combined at these two big carriers,? he said.

?This is exemplary of the significant competitive advantage Apple?s iOS platform has gained helped by a halo effect from other devices sales such as iPad locking consumers into Apple?s ecosystem. Thus with upcoming iPhone 5 this should just continue to rise, thus ?iPhone mania? is far from over.?

Mobile is increasingly a global game, with many companies experiencing significant growth in emerging markets. However, one of Apple?s challenges will be the historically higher price points for its mobile devices compared to other manufacturers.

?In terms of opportunities, emerging markets such as China, India and Brazil are next growth markets for Apple, however, Apple will have to get down to affordable price points to grow its sales, which might hurt Apple?s margins,? Mr. Shah said.

Apple faces other challenges going forward, too, including that its user interface is starting to look a little long in the tooth.

?In terms of challenges, Apple?s iOS UI though simple has been aging now and is still the same as it was five years ago,? Mr. Shah said.

?Apple though should be able to sustain with this UI in near-to mid-term but growing multi-device convergence and regular fresh UI updates from Android and Windows ecosystem will seriously challenge and slow down Apple?s future growth,? he said.