(Telecompaper) Apple reported revenues of USD 42.2 billion for its fiscal third quarter to June, down from USD 49.6 billion a year ago and towards the high end of its outlook of USD 41-43 billion. The company's gross margin dipped to 38 percent from 39.7 percent in the year-earlier period, also coming in at the end of expectations. Net profit fell to USD 7.8 billion or USD 1.42 per share, from USD 10.7 billion or USD 1.85 per share. Apple CEO Tim cook said the results "reflect stronger customer demand and business performance than anticipated at the start of the quarter" and a successful launch of the iPhone SE. The launch of the cheaper iPhone led to a 23 percent year-on-year drop in revenues from smartphones to USD 24.0 billion, on a 15 percent fall in unit sales to 40.4 million. Compared to the previous quarter, iPhone revenues fell 27 percent and unit sales were down 21 percent.