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Mac and iPhone sales boost Apple

2007-07-26 03:01:42

Apple has made strong three-month profits, helped by Mac and iPhone sales, even

though the phones were only available for two days of the quarter.

Apple sold 270,000 iPhones on the first two days of their US launch.

Net income was $818m ( 398m) between April and June, up 73% from the same

period of 2006.

Apple shares have risen 62% since the start of the year when chief executive

Steve Jobs unveiled the iPhone and predicted 10 million sales in 2008.

But the shares fell on Tuesday after AT&T, the exclusive US carrier, said it

had activated 146,000 iPhones in the first two days after the 29 June launch.

Analysts had been expecting the number sold in the first weekend would be

closer to 500,000.

Direct sales

Mr Jobs says he is confident of selling his millionth phone within the first

three months.

Apple said it shipped 1.76 million Macintosh computers in the quarter, a rise

of 33% from a year earlier, while shipments of iPods were 9.82 million, up 21%

from the same period of 2006.

The results were also boosted by lower commodity prices and more sales being

made in Apple stores, according to its chief financial officer Peter

Oppenheimer.

"We did benefit in the quarter from a favourable commodity environment and

better mix of direct sales as well," he said.