Technology giant, Apple has posted weaker than expected financial results in its most recent quarter in years, surprising technology analysts in the US and around the world.

The company blamed rumors that indicated that the company was planning to release a new iPhone 5 even as it was preparing to release the refreshed iPhone 4 model. This is the company's first quarterly earnings under Chief Executive Tim Cook, who took over from Steve Jobs in August.

The company said that it sold 17.07 million iPhones in the fourth quarter of tis fiscal year that ended on 24 September. Tshi was below the 20 million expected by analysts. The iPhone is the main product offering by the company and accounts for nearly 40 percent of annual sales.

The revenue of the company rose 39 percent to $28.27 billion, lower than the average analyst estimate of $29.69 billion, making it the first time that the company missed expectations since 2008.

Apple is currently competing with Google's Android partners including Samsung and HTC along with other players such as RIM's BlackerBerry and Microsoft Window's powered devices. It is engaged in an elaborate legal battle with Samsung and others around the world over patents.

The shares of the company declined 7 percent in extended trading on Tuesday, taking off $27 billion off the value of the technology giant.