Oct 21, 2008 4:15 pm US/Eastern
Apple's Profit Jumps 26 Percent On iPhone Boom
NEW YORK (AP) ―
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For the three months ended Sept. 27, Apple's profit climbed to $1.14 billion, or $1.26 per share, from $904 million, or $1.01 per share in the same period last year.(File)
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Apple Inc. said its profit jumped 26 percent in its fiscal fourth quarter as the newest iPhone 3G outsold the market-leading BlackBerry from Research in Motion Ltd.
For the three months ended Sept. 27, Apple's profit climbed to $1.14 billion, or $1.26 per share, from $904 million, or $1.01 per share in the same period last year.
Sales jumped 27 percent to $7.9 billion from $6.22 billion in the year-ago quarter.
Cupertino, Calif.-based Apple's profit topped Wall Street's expectations, but sales missed. Analysts had expected the company to sell $8 billion worth of Macintosh computers, iPods, iPhones and other gadgets, for a profit of $1.11 per share, according to a Thomson Reuters poll.
Peter Oppenheimer, Apple's chief financial officer, said in an interview Tuesday that Apple set records for Macintosh sales and for iPod sales in a non-holiday quarter, but that iPhone results marked the brightest spot. The company sold 6.9 million of its next-generation iPhone 3G in the quarter — more than the 6.1 million total first-generation iPhones sold.
Research in Motion reported it sold 6.1 million BlackBerry smart phones in the quarter that ended Aug. 30.
"We blew it out on the iPhone," Oppenheimer said.
Apple said it sold 2.6 million Macs and 11.1 million iPods in the quarter, allaying fears that the sluggish economy would weigh on Apple's back-to-school sales.
Shares of Apple fell $6.95, or 7.1 percent, to close at $91.49. In extended trading after the earnings report, the stock gained back $1.91, or 2.1 percent, to $93.40.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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