Apple profit soars on iPhone sales

APPLE has reported a steep rise in profits in the final quarter of its financial year on strong sales of iPhones and Mac computers. The company today reported net profits of $US1.14 billion ($1.62 billion) in the quarter which ended September 27, up 31 per cent from the same period a year earlier.

Earnings per share were $US1.26, better than the $US1.11 forecast by analysts.

Apple reported revenue of $US7.9 billion ($11.2 billion) in its fiscal fourth-quarter, up from $US6.22 billion ($8.83 billion) during the same quarter a year ago.

"Apple just reported one of the best quarters in its history, with a spectacular performance by the iPhone - we sold more phones than RIM," Apple chief executive Steve Jobs said.

RIM refers to Research In Motion, which makes Blackberry devices.

Apple said 6.89 million iPhones were sold in the quarter, up from 1.11 million in the same period last year.

The company said it shipped 2.61 m illion Mac computers during the quarter - 21 per cent unit growth and 17 per cent revenue growth over the year-ago quarter.

It said it sold 11.05 million iPods during the quarter, representing 8 per cent unit growth and 3 per cent revenue growth over the year-ago quarter.

"We don't yet know how this economic downturn will affect Apple. But we're armed with the strongest product line in our history," Mr Jobs said.

Apple chief financial officer Peter Oppenheimer issued a cautious outlook.

"Looking ahead, visibility is low and forecasting is challenging, and as a result we are going to be prudent in predicting the December quarter," he said.

"We are providing a wide range for our guidance, targeting revenue of $US9.0 billion ($12.8 billion) to $US10.0 billion ($14.2 billion) and earnings per diluted share between $US1.06 and $US1.35."