Apple last night easily beat estimates with a 67% rise in profits for the fourth quarter of its financial year. The popularity of its iPhone and iPod appears to be boosting Macintosh computer sales.
Net profit climbed to $904m, or $1.01 per share, from $542m a year ago. Revenue rose 29% to $6.22 billion. That handily beat Wall Street's average targets of 85 cents per share and $6.06 billion of revenue.
Apple also benefited from falling prices of electronic components, lifting its gross profit margin to 33.6%. The company said it expected that to fall to 31% in its current quarter as prices for some parts started to rise again.
Apple also forecast first-quarter profit of $1.42 per share and revenue of $9.2 billion, ahead of the $1.40 per share and $8.7 billion that were the average Wall Street targets.
During the quarter, Apple shipped 1.12 million units of the iPhone, which went on sale in the US in late June. That was toward the high end of analysts' forecasts.
Apple did not disclose its chunk of shared revenue from AT&T, the exclusive US network carrier for the iPhone. Analysts have estimated the payments could amount to anywhere from $150 to $350 or more per unit over the two-year contract.
Apple also sold 2.2 million Macintosh computers in the quarter, up 34% from a year earlier. The company often sees strong computer sales in its fourth quarter, which coincides with back-to-school buying.
IPod sales were up 17% from a year earlier, but at 10.2 million units, came in below most expectations.
