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Tuesday, October 21, 2008

Apple's Profit Jumps 26% on Strong iPhone Sales

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Kathryn Glass

FOXBusiness

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Apple (AAPL) beat Wall Street earnings estimates, as its net income jumped 26% on the back of strong iPhone sales.

The tech bellwether's net income rose to $1.14 billion, or $1.26 a share, from $904 million, or $1.01 a share, a year earlier.

Profit was well above estimates; analysts were expecting earnings of $1.11 per share, according to analysts polled by Thomson Reuters. Earnings were significantly improved from the year-ago period, when Apple had reported earnings of $1.01 per diluted share.

Revenue was up, but slightly lower than expected -- it rose 27% to $7.9 billion, while analysts had expected $8.05 billion. The company reported adjusted sales of $11.68 billion; 41% of the quarter’s revenue came from international sales.

IPod sales rose 8% in the quarter to 11.1 million, while iPhone sales rose to 6.89 million, compared to 1.1 million one 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 (RIMM)," said Steve Jobs, Apple's CEO, in a press release from the company. "We don't yet know how this economic downturn will affect Apple. But we're armed with the strongest product line in our history, the most talented employees and the best customers in our industry. And $25 billion of cash safely in the bank with zero debt."