Apple is celebrating record breaking iPad sales for Q3 2012. The tech giant reported its Q3 revenues on Tuesday with $8.8 billion in profit, despite lowered demand for existing iPhone models, ahead of iPhone 5's launch.

During its third financial quarter, ending June 30, Apple posted a revenue of $35 billion, which is lower than the Wall Street predictions. Apple earned $8.8 billion or $9.32 per share, with heavy increase in iPad sales.

Continuing on its 28 percent year-to-year growth track, Apple sold 26 million iPhone devices in the quarter. However, iPad sales went up by 84 percent from a year ago with 17 million iPad devices sold in the quarter.

"We're thrilled with record sales of 17m iPads in the June quarter," said Apple CEO Tim Cook. "We've also just updated the entire MacBook line, will release Mountain Lion tomorrow (Wednesday) and will be launching iOS 6 this fall. We are also really looking forward to the amazing new products we've got in the pipeline."

In addition, the company sold 4 million Macs with 2 percent growth over last year. Portable media player iPod accounted to 6.8 million units, down by 10 percent year-on-year.

"We're continuing to invest in the growth of our business and are pleased to be declaring a dividend of $2.65 per share today. Looking ahead to the fourth fiscal quarter, we expect revenue of about US$34bn and diluted earnings per share of about US$7.65," said Peter Oppenheimer, Apple's Chief Financial Officer.

Apple will roll out the quarterly cash dividend to its stockholders, $2.65 a share, on Aug. 16.

With over 80 percent growth in its tablet sales from a year ago, Apple is celebrating the iPad's success with no mention of iPhone in sales. The main reason behind the lower-than-expected growth of iPhone sales is the build-up of anticipation surrounding the company's upcoming smartphone. Apple fans are reportedly holding line for the next generation iPhone, which is expected to debut this fall.