iPhone sales boost Apple results

2009-07-22 07:45:40

US technology giant Apple has seen quarterly results beat forecasts, thanks to

strong iPhone sales.

Net profits hit $1.23bn ( 953m), or $1.35 a share, in the fiscal third quarter

to 27 June, from $1.07bn, or $1.19 a share, a year earlier.

Apple sold more than 5.2 million iPhones in the quarter, seven times greater

than the same period a year, before, boosted by a new iPhone model.

Analyst reacted positively to the news and shares rose in after-hours trade.

Shares in Apple ended at $151.60 before rising to $157.02 in after-hours trade.

'Advantages'

Andy Hargreaves, an analyst at Pacific Crest Securities described the the

numbers as "great".

"Their gross profits continue to surprise people and there is a return to

product momentum...a return to growth in the Mac business, and then the iPhone

is doing tremendously well and that is a potent combination."

Revenue for the period climbed 12% to $8.3bn, ahead of expectations of $8.2bn.

Every region in the world saw revenue increase.

The number of Macs sold by Apple grew 4% year-on-year.

Shaw Wu, an analyst at Kaufman Bross said: "We think they are very uniquely

positioned with their competitive advantages."

The one area to see a contraction was its iPod, where sales were 7% weaker

year-on year.

For the current quarter, Apple earnings of $1.18-$1.23 a share with revenue

between $8.7bn and $8.9bn, but analysts highlighted that Apple is consistently

conservative in its predictions.

Apple chief financial officer Peter Oppenheimer said: "We are very proud of

this result, particularly given the economic climate around us."