Apple has posted a smaller-than-expected six percent rise in quarterly revenue, but the good news was that revenue in that period surged 28 percent in greater China despite stiff competition in its third-largest market.

Thanks to a strong performance in the vital for the future Asian market, the tech giant sold 35.2 million iPhones worldwide in the three months up to June.

Chinese iPhones sales jumped about 48 percent and Mac computer sales there rose 39 percent.

Chief Executive Tim Cook told analysts on a conference call that Apple’s Chinese performance was “honestly surprising”.

However Apple continues to struggle in the more saturated, developed regions of the United States and Europe, its two largest markets.

It forecast revenue of $37 billion (27.5 billion euros) to $40 billion (29.7 billion euros) this quarter, is weak compared with Wall Street’s outlook for $40 billion or more.

But whether Apple can again produce a revolutionary new product, something it has not done since the iPad in 2010, remains the central question for investors.

Many expect Apple to make a play for the wearable device market with a smart watch, dubbed iWatch, or maybe iTime.

Analysts also expect the company to introduce two iPhone versions this fall, including a 5.5-inch model that thrusts Apple into the market for larger-sized phones that rival Samsung helped popularise.

The iPhone maker, which derives most of its business from the high-end device, reported sales of $37.4 billion (27.8 billion euros) in its fiscal third quarter ended June, falling short of Wall Street’s expectations for about $38 billion (28.2 billion euros).

with Reuters