Apple's latest quarterly earnings fell 9% as more people bought the company's lower-priced iPhones and iPads, according to fourth-quarter results announced yesterday.

The numbers included early sales of the latest iPhones released late last month. The models, called the 5S and 5C, helped Apple Inc. increase its iPhone sales from the same time last year. But the average price that Apple fetched for its iPhones declined, extending a recent trend that has trimmed the Cupertino, Calif., company's profit margin and depressed its stock price.

This marks the third consecutive quarter that Apple's earnings have dropped from the previous year. Apple earned $7.5 billion, or $8.26 per share, during the three months ending Sept. 28. That compared to income of $8.2 billion, or $8.67 per share, last year. The latest quarterly earnings topped the average estimate of $7.92 per share among analysts polled by FactSet. Revenue rose 4% to $37.5 billion—about $600 million above analyst predictions. Investors were hoping for a better showing and, perhaps, a more optimistic forecast for the current quarter, which covers the crucial holiday shopping season.