iPhone sales boost Apple results

Sales of iPhones grew seven times in the quarter

Apple's quarterly results were better than forecast, thanks to strong iPhone sales, including its new 3GS model.

Net profits hit $1.23bn (£953m), or $1.35 a share, in the fiscal third quarter to 27 June, from $1.07bn, or $1.19 a share, a year earlier.

The US technology giant sold more than 5.2 million iPhones in the quarter, seven times more than a year earlier.

Analysts reacted positively to the profits news and shares rose in after-hours trade.

Shares in Apple ended at $151.60 before rising to $157.02 in after-hours trade.

'Advantages'

Andy Hargreaves, an analyst at Pacific Crest Securities described the the numbers as "great".

"Their gross profits continue to surprise people and there is a return to product momentum...a return to growth in the Mac business, and then the iPhone is doing tremendously well and that is a potent combination."

Revenue for the period climbed 12% to $8.3bn, ahead of expectations of $8.2bn. Every region in the world saw revenue increase.

The number of Macs sold by Apple grew 4% year-on-year.

Shaw Wu, an analyst at Kaufman Bross said: "We think they are very uniquely positioned with their competitive advantages."

The one area to see a contraction was its iPod, where sales were 7% weaker year-on year.

For the current quarter, Apple earnings of $1.18-$1.23 a share with revenue between $8.7bn and $8.9bn, but analysts highlighted that Apple is consistently conservative in its predictions.

Apple chief financial officer Peter Oppenheimer said: "We are very proud of this result, particularly given the economic climate around us."

He also admitted that Apple was "currently unable to make enough iPhone 3GS to meet high demand and we are working to improve that".

Apple also hopes to make the iPhone available in more countries than the current 18, including China "within a year".