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Apple has most profitable quarter ever over the holidays, fueled by expanded iPhone sales
By JORDAN ROBERTSON
AP Technology Writer
(AP) 05:05:29 PM (ET), Monday, January 25, 2010 (SAN FRANCISCO)
Apple Inc. rocketed to its most profitable quarter ever over the holidays, as huge sales of the iPhone _ and a new way the company accounts for the device _ led to a nearly 50 percent jump in net income.

The company offered no clues about what it plans to unveil Wednesday in San Francisco, although CEO Steve Jobs indicated that investors should expect a significant event.

"The new products we are planning to release this year are very strong, starting this week with a major new product that we're really excited about," he said in a statement.

The iPhone's rollout in several major new markets, including China and South Korea, helped Apple double sales of the hot phone. Apple also got a boost because now it puts iPhone revenue and profit on its books when the gadget is sold, rather than deferring those results over the presumed life of the device.

Apple said Monday it earned $3.4 billion, or $3.67 per share, in the latest quarter, which ended Dec. 26. In the same period of 2008 it earned $2.3 billion, or $2.50 per share, when it was still deferring iPhone revenue.

Revenue was $15.7 billion, a 32 percent jump from $11.9 billion in the same period last year.

Apple's report reflected the company's ability to allure shoppers without deep cuts to its premium prices. Apple's reputation as a luxury brand hasn't dented its ability to put up better numbers even as many computer buyers gravitate toward cheaper options.

Apple sold 8.7 million iPhones in the quarter, double what it sold in the same period the year before, and 21 million iPods, an 8 percent decline. Although Apple refreshed its iPod Nano with new colors and a video camera last fall, sales of the iPod have suffered as the iPhone, which has iPod features built in, has grown in popularity.

The earnings report was released after Apple shares gained $5.32, 2.7 percent, to close at $203.07. In extended trading the shares rose $1.28 to $204.36.


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* iPhone remains a hit. *

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