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By Christina Farr and Edwin Chan SAN FRANCISCO (Reuters) - Apple Inc posted a smaller-than-expected 6 percent rise in quarterly revenue on Tuesday, but revenue surged 28 percent in greater China despite stiff competition in its third-largest market. It sold 35.2 million iPhones in the June quarter, a rise of about 13 percent that was in line with analysts' projections, helped by a strong performance in an Asian market considered crucial to Apple's longer-term growth prospects. Chief Executive Tim Cook told analysts on a conference call that Apple's Chinese performance was "honestly surprising." Unit iPhone sales jumped about 48 percent and Mac computer sales rose 39 percent in the June quarter, Chief Financial Officer Luca Maestri said in an interview. This month, Samsung Electronics Co Ltd estimated April-June operating profit far below most analysts' forecasts, as its Galaxy S5 sold more slowly than expected in the face of severe competition.    "We have a really good runway in front of us with China Mobile," Maestri said, referring to Apple's main carrier partner in the world's No. 2 economy. more...


By Bill Rigby SEATTLE (Reuters) - Microsoft Corp said it aims to get its loss-making Nokia phone unit to break even within two years, helping its stock rise in after-hours trade. Microsoft's chief financial officer said in a call with analysts that the company plans to take $1 billion in costs out of the Nokia operation and stop its losses by fiscal 2016 - which ends in June 2016 - following massive job cuts announced last week. "The expense guidance around Nokia was much better than feared," said Daniel Ives, an analyst at FBR Capital Markets. "While there is still some heavy lifting ahead, it appears brighter days are on the horizon for Microsoft after a decade of pain and frustration." Microsoft shares hit new 14-year highs over the past week, and were up 1.1 percent at $45.33 after hours. more...


By Christina Farr SAN FRANCISCO (Reuters) - Apple Inc's iPad is losing steam just four years after its release, but an alliance with International Business Machines Corp could rejuvenate a flagging product by entering into a largely untapped corporate market. Apple shipped 13.2 million iPads in the June quarter, 8 percent fewer than a year earlier and lagging Wall Street's forecast for 14 million or more. Apple helped create the tablet market in 2010 with its first iPad. Chief Executive Officer Tim Cook described iPad sales as "very bifurcated" - they continue to grow at 50 percent or above in emerging markets such as the Middle East and China, but in developed countries like the United States, the "market is weaker."     Research firm IDC lowered its forecast for 2014 worldwide tablet demand growth to 12.1 percent - a fraction of the 51.8 percent expansion of 2013. more...


By Joseph Ax NEW YORK (Reuters) - The government will call Mark Zuckerberg to testify against an upstate New York man accused of trying to cheat the billionaire founder of Facebook Inc out of half his stake in the social media company, a federal prosecutor said on Tuesday. Zuckerberg is expected to be a key witness against Paul Ceglia, who is charged with forging a 2003 contract with Zuckerberg that purportedly entitled him to half of Facebook. “It's a witness that the government 100 percent knows it will be calling at trial,” Assistant U.S. Attorney Christopher Frey said at a court hearing before U.S. District Judge Andrew Carter in New York federal court. The charges stem in part from a 2010 civil lawsuit Ceglia filed against Zuckerberg and Facebook in Buffalo, New York, claiming the two men signed a contract when Zuckerberg was a freshman at Harvard University that gave Ceglia half of a planned social networking website. more...


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