Apple shares plunge after reporting flat earnings

Apple boss Tim Cook (l) cheered the firm's deal with China Mobile in Beijing

Shares in tech giant Apple fell close to 9% in after-hours trading after the firm reported flat profits of $13.1bn (£7.9bn) during the quarter ending 28 December.

While earnings beat expectations, sales guidance for the current quarter was lower than analysts expected.

Apple said it sold a record 51 million iPhones and 26 million iPads.

"We are really happy with our record iPhone and iPad sales," said Apple boss Tim Cook in a statement.

Apple said it expected revenue of between $42bn and $44bn for its second quarter of 2014, slightly less than analysts had forecast.

China scrutiny

Crucially for analysts, the firm said revenue rose by 29% in the greater China region, which includes China, Taiwan, and Hong Kong, compared to the same period last year.

On a conference call to discuss the earnings, Mr Cook said: "We really turned in a stellar quarter in greater China."

Apple announced a deal with the world's biggest mobile phone network, China Mobile, in December, and many investors had been closely watching the earnings for hints on the company's performance in the region.

Apple's phones have been available on China Mobile since 17 January.

"Last week was the best week for activations we've ever had in China," said Mr Cook, while noting that iPhones are only available on China Mobile in 16 cities at the moment.

By the end of the year, Apple hopes to expand its offerings to more than 300 cities.

Global woes

However, Apple said sales in the rest of the Asia-Pacific region fell 9%, and that profits were hurt by currency fluctuations, particularly with the Japanese yen.

Apple also reported a sales dip in the Americas as well.

This was partially due to stronger than expected sales of the more expensive iPhone 5S.

Apple executives said on the call that it took the firm some time to change its supply chain to provide the US market with more of those phones compared with the cheaper iPhone 5C, primarily aimed at Chinese consumers.

Apple also noted that some US carriers changed their upgrade policies, which hurt sales in the region, as consumers became more reluctant to upgrade aging iPhones.

Sales of iPods - Apple's once iconic music player - fell 52%.

"I think all of us have known for some time that iPod is a declining business," said Mr Cook.

Apple: We're fixing the 'white screen of death'

Since Apple released iOS 7, its completely revamped operating system for the iPhone, reviews have been mixed but mostly positive.However, a glitch that has quietly plagued iPhone users — the "white/black screen of death," a bug that abruptly soft reboots the smartphone — will finally be addressed in a future iOS 7 update. "We have a fix in an upcoming software update for a bug that can occasionally cause a home screen crash," Apple spokesperson Trudy Muller told Mashable. SEE ALSO: iOS 7: Here's What's New Some of the first reports of the glitch began to crop up as early as September on Apple's discussion forums, and subsequently appeared on various social media channels like Twitter. Based on various reports, the color of the boot-up screen depends on the color of your iPhone's face. A white iPhone face produces a white boot up screen with a black Apple logo, while a device with a black face produces a black screen with a white Apple logo. The glitch appears to affect any iPhone running iOS 7, with some users reporting that the sudden shutting off occurs once the iPhone's battery dips down into the 30% level. The update is rumored to land alongside iOS 7.1, which is currently in its fourth beta with developers. In addition to fixing the "white screen of death," iOS 7.1 is expected to bring some minor UI and design changes.

Apple sues HTC over phone patents

Jobs: "Competitors should create their own original technology"

Apple has taken legal action against phone maker HTC, alleging it has infringed patented technology.

HTC has been accused of infringing 20 patents owned by Apple that are used in the iPhone.

Apple said the patent infringements covered technology used in the iPhone interface as well as its "underlying hardware and architecture."

HTC makes phones for many firms including Google and was behind the Nexus One handset.

In a statement Apple boss Steve Jobs said: "We can sit by and watch competitors steal our patented inventions, or we can do something about it.

"We've decided to do something about it," he said. "We think competition is healthy, but competitors should create their own original technology, not steal ours."

In its legal filing, Apple is seeking a lasting injunction which would effectively bar HTC from selling phones that use the disputed technology in the US.

The legal action has been filed with the US International Trade Commission and a district court in Delaware.

In its response to the legal action, HTC said it had only just learned about Apple's legal action and has not had the chance to investigate the filing.

"Until we have had this opportunity, we are unable to comment on the validity of the claims being made against HTC," it said in a statement.

In addition to making the Nexus One, the first handset to be branded by Google, HTC has also made several handsets that use Google's Android operating system.

At the same time Apple is locked in legal action with Nokia. The Finnish phone giant sued Apple for patent infringement in October 2009, alleging it had stolen patented technology.

In response, Apple countersued in December 2009. Nokia launched a second round of legal action in the closing days of 2009.