Apple on Tuesday reported a $1.23 billion profit on $8.34 billion revenue for its third fiscal quarter. The company said it sold 2.6 million Macs, representing a four percent increase over the same quarter last year. It was a big quarter for iPhones as Apple sold 5.2 million of the devices, representing 626 percent unit growth over the year-ago quarter.

One product that suffered this quarter was the iPod. According to Apple it sold 10.2 million iPods for the quarter, a seven percent decline of the same quarter last year.

“We’re making our most innovative products ever and our customers are responding,” said Steve Jobs, Apple’s CEO in a statement. “We’re thrilled to have sold over 5.2 million iPhones during the quarter and users have downloaded more than 1.5 billion applications from our App Store in its first year.”

Apple said international sales accounted for 44 percent of the quarter’s revenue.

Looking ahead to the fiscal fourth quarter, Apple CFO Peter Oppenheimer said he expects revenue in the range of about $8.7 billion to $8.9 billion and we expect diluted earnings per share in the range of about $1.18 to $1.23.

Oppenheimer also said it was the company’s largest non-holiday quarter for revenue, earnings and quarterly cash flow.

Apple stock closed at $151.51 down $1.40 or 0.91 percent. In after hours trading the stock is up $0.49 or 0.32 percent to $152.