Apple's iTunes business generated $1.8bn in revenue in its fiscal Q3 2012, down $100m on what it made in Q2.

However, Q3 revenue - counting the three months to June 30, 2012 - was up $400 million year-on-year.

Apple posted an overall $8.8 billion profit on revenue of $35 billion - with net income increasing 21% over the prior June quarter’s results. The quarter’s net income translated to diluted earnings per share of $9.32.

However, the firm's share price dropped ...