APPLE, which makes the iPhone and iPad, has announced a profits fall of £1.38 billion, its first slide in a decade.

Tim Cook, who took over as chief executive following the death of founder Steve Jobs two years ago, put a gloss on the quarterly figures saying the company was busy working on "amazing" new hardware and exciting products.

The technology giant posted second-quarter profits of £6.27bn. However, the results will put further pressure on its share price.

The firm last week lost its position as the world's most valuable publicly traded company when its shares hit their lowest levels in 18 months.

The change in Apple's fortunes is being attributed to increasing competition, reports of a slowdown in sales of its iPhone and suggestions the firm has lost crucial ground to rivals such as Samsung.