Apple 3Q Profit Soars 31%

Wall Street turned thumbs down to a good earnings report from Apple on Monday. Sales of Macintosh computers and iPod music players boosted Apple’s profits by almost a third from last year. But still, Apple stock fell by more than $16 a share, just shy of ten percent, in afterhours trading.

Cupertino, Calif.-based Apple earned $1.07 billion, or $1.19 per share, 11 cents ahead of Wall Street’s expectations, according to a Thomson Financial survey of analysts. Revenue jumped 38 percent to $7.46 billion, ahead of analysts’ average view for $7.37 billion in sales. Apple said it shipped more Macs in the quarter than ever before — 2.5 million, up 41 percent from a year ago, with desktop shipments growing faster than laptops. Apple also said iPod sales jumped 12 percent.

“It was an outstanding quarter–our highest third-quarter revenue in eight years,” said Apple CEO Steve Jobs. “Our Mac-based revenue grew a healthy 19 percent, and our music-based revenue grew an incredible 162 percent.”

Also, Apple shipped 860,000 iPod portable players, bringing the product’s lifetime total to 3.7 million units, Oppenheimer said.

The demand for the mini version of the popular player has been “staggering” in the United States and continues to far outstrip supply even though the product’s hard-disk provider has ramped up production, Apple’s worldwide vice president of sales Tim Cook told analysts during a conference call. “Unprecedented” orders for European shipments, set to begin July 24, also will mean continued backlogs probably through the end of the year. It will be difficult to predict when supply will catch up with demand, Cook said.

Source: abc7news

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